Economists: Omicron poses limited downside to Indian economy

Under control: Shoppers at a market in Amrawati, Maharashtra. Inflation is expected to peak at 5.8% this quarter and then fall, remaining under the Reserve Bank of India’s 6% upper threshold until at least the end of fiscal 2023-2024. — Bloomberg

MUMBAI: There is scant downside risk to the Indian economy in the last months of this financial year from the Omicron coronavirus variant, according to economists polled by Reuters who said New Delhi should focus on fiscal prudence in its February budget.

Asia’s third-largest economy is in the midst of a resurgence in coronavirus cases driven by the new variant that has forced most states to impose localised restrictions.