A key requirement of opening up economic activity in a country has been the ability to test and isolate people quickly for the Covid-19 virus. In this regard, India still lags all major economies except Japan. While India has increased the number of daily tests to 121,000 a day from 16,000 a day in mid-April, it has a long way to go. Still, Morgan Stanley is seeing initial signs of economic activity bottoming out. "Electricity demand in India is back to 2019 levels," it wrote in its Global High Frequency Economic Tracker.
With inadequate testing infrastructure, there is a risk of a rise in infections once people resume activity and travel. On May 28, Haryana and Karnataka reported their highest daily case count on account of air travel being opened up on May 25.
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