BENGALURU, Could 31 (Reuters) – India’s financial development picked as much as 1.6% year-on-year within the January-March quarter, official information confirmed on Monday, earlier than a harsh second wave of COVID-19 hit the nation final month.
The read-out for the March quarter was sooner than the 1.0% development forecast of analysts in a Reuters ballot and upwardly revised 0.5% development fee for the earlier quarter.
GARIMA KAPOOR, ECONOMIST – INSTITUTIONAL EQUITIES, ELARA CAPITAL, MUMBAI
“The Q4FY21 GDP development of 1.6% displays the total impression of unlocking of the economic system put up COVID-19 shock (of first wave). Whereas the second wave of infections has been way more extreme, the absence of a stringent nationwide lockdown has been a optimistic.”
“The impression through the second wave has been extra pronounced on shopper sentiment and mobility quite than financial exercise. The rebound in shopper spending would therefore be extra gradual than wave 1 with vaccination being the important thing driver. We anticipate FY22 GDP development at 10.5% vs our earlier estimate of 12.5%.”
Reporting by Nivedita Bhattacharjee and Rama Venkat in Bengaluru; Modifying by Devika Syamnath and Sriraj Kalluvila