The GDP growth in April-June quarter this fiscal stood at 20.1 per cent. The Indian economy had contracted by 24.4 per cent in April-June last year.
In value terms, the GDP stood at Rs 35,73,451 crore in July-September 2021-22, higher than the Rs 35,61,530 crore in the corresponding period of the 2019-20 financial year.
Most experts felt that India’s GDP growth in the second quarter of FY22 is along expected lines with the economy gaining momentum.
Here’s what they said …
The real GDP growth in Q2 at 8.4% has been slightly better than consensus but in line with our expectations. While services was a drag in Q1, with improved traction for high-contact activities, this segment has done relatively better in Q2
Sujan Hajra, chief economist, Anand Rathi Securities, Mumbai
We expect India to clock 9.5%-10% growth in FY22 … With growth revival and sticky core inflation, we expect the Reserve Bank of India to undertake phased withdrawal of liquidity and start raising the policy rates soon
Madhavi Arora, lead economist at Emkay Global Financial Services
(The Q2 GDP) data affirms that the economy is on continuous mend and will likely be back to pre-pandemic levels before end-FY22.We reckon that the nascent recovery ahead may still be partly led by capital and profits and may have traces of a scarred and segmented labor market (as seen by slowing rural demand) and sub-optimal effective fiscal policy stimulus. However, exogenous demand drivers in the form of exports and sustained government capex will be needed to create a growth bridge till private investment and consumption recover optimally
Sujan Hajra, chief economist, Anand Rathi Securities, Mumbai
The recovery is led by the services sector, with individual mobility back to pre-Covid levels, and ultra-accommodative financial conditions, as well as higher government expenditures
Gaura Sen Gupta, economist with IDFC First Bank, Mumbai
The GDP growth for Q2 at 8.4% confirms that the economy gained traction in the second quarter. On the supply side, agriculture growth provided support, along with a pick-up in service sector growth at 10.2% as contact-intensive services improved along with financial and real estate sectors
Sakshi Gupta, senior economist, HDFC Bank, Gurugram
The improvement in GDP growth in Q2 is on expected lines. With increased vaccination and economy moving back to normalcy, most high frequency economic indicators have bounced back above pre-COVID-19 levels. Corporate performance as reflected by quarterly results has also been showing healthy improvement in the economy.
Rajani Sinha, chief economist and national director (research), Knight Frank India, Mumbai
The GDP growth for Q2 came a tad lower than our estimates, led by disappointment in recovery of industrial sector, mainly manufacturing. Impressive momentum of vaccination, releasing of the pent up demand mainly in services sector, nascent uptick in private investment appetite and accelerated momentum of government spending in H2FY22 will remain supportive hereon, even as elevated inflation and weak rural sentiments are emerging as risks on the horizon
Garima Kapoor, economist (institutional equities), Elara Capital, Mumbai
(With inputs from Reuters)
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