New Delhi, May 7 (TIWN) As states take to lockdowns amid the severe Covid crisis, the Finance Ministry in a report has said that second wave of the Covid-19 poses downside risk to economic activities during April-June, although the impact is expected to be muted compared to that in the first wave.

“The second wave of COVID-19 has posed a downside risk to economic activity in the first quarter of FY 2021-22. However, there are reasons to expect a muted economic impact as compared to the first wave. Learning to “operate with COVID-19″, as borne by international experience, provides a silver lining of economic resilience amidst the second wave,” it said.  Noting that the global economy recovered further in March and April, powered with vaccination drives and fiscal stimuli by few large economies, it said that in India the momentum in economic recovery since the first wave moderated in April due to the second wave of coronavirus.  It said that agriculture continues to be the silver lining with record food grain production estimated in the ensuing crop year on the back of predicted normal monsoons.