MUMBAI: The ongoing second wave of COVID-19 will dampen the pace of recovery for corporate India and the contact-intensive sectors will be hit the most, a domestic rating agency said on Wednesday.
However, the impact of the second wave on many sectors is set to be lower than the first because the lockdowns are less widespread and stringent as of now as against the strong nationwide lockdown last year which brought all economic activities to a grinding halt, Icra said.
The country has been reporting alarmingly high cases of infections at over 3 lakh additions and 2,000 fatalities a day, for the last few days.
Allegations of under-reporting by some states are also rampant, and the country has had to depend on major world powers for help.
The rating agency said it expects only 4 per cent of its rated portfolio to be severely impacted as a result of the second wave as against 17 per cent in the first wave last year.
“With the fresh uncertainties…