The second wave takes a toll on India’s position among emerging markets

 The second wave takes a toll on India’s position among emerging markets

After topping the league tables for two successive months, India has slid three rungs to occupy the fourth spot among major emerging markets globally. In May, India fell behind Brazil, China, and Russia, the latest update to Mint’s emerging markets tracker shows.

While most emerging markets were hit hard by the second wave, India suffered more, with far greater loss of lives and livelihoods. Unlike in the first wave, lockdowns in the second wave were clamped late, and the economic impact of the lockdowns was felt largely in May. Mobility fell, and so did several key economic indicators, lowering India’s rank in the league tables.

As the second wave ebbs, and vaccinations pick up pace, there is reason to hope that things will get back on track in the coming months. However, there are some dark clouds on the horizon as well. The US Federal Reserve has signaled it might taper its quantitative…

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