Perspective on GDP Numbers for Q3 FY-21 by Rajani Sinha, Knight Frank India
Below are Perspective on GDP Numbers for Q3 FY-21 by Ms. Rajani Sinha, Knight Frank India
“With the economy moving towards normalcy, most economic indicators had been improving in the last few months and hence the movement of third quarter GDP growth to the positive territory does not come as a surprise. As expected, the manufacturing sector has bounced back recording a positive growth. Strong revival in construction sector has also boosted overall GDP growth. Among the service sectors, positive growth in Financial services and real estate sector bodes well for the economy.
With the pent-up demand taken care of in the last few months, going forward it will be critical to see at what level the economic growth momentum is sustained. The government’s measures to support capital expenditure will help sustain growth in the medium to long-run. But for the near-term, acceleration in consumption spending would be important to propel India’s growth momentum. Increased threat of second wave of COVID infection in India would be a critical aspect to watch out for, as worsening of situation could have a huge bearing on consumer sentiments and spending”
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