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Below are Views On GDP print for Q3-FY 2021 By Mr. Kumaresh Ramakrishnan, CIO-Fixed Income, PGIM India Mutual Fund

GDP print for Q3 – positive finally
GDP print for Q3-FY 2021, finally came in positive albeit marginally at +0.4%, after a negative 8% and 24.4% prints in the two previous quarters. Agriculture continued to show robustness at 3.9%, as it was the least affected by the pandemic.
 
Mining remained lacklustre remaining in the negative zone. Manufacturing, electricity and construction all moved into the positive territory. This was a reaffirmation of the recent monthly IIP prints that has been showing a strong return to economic activity in all of these segments. Services remained weak again with most sub -segments other than banking de-growing.
 
While a return to positive growth is a sigh of relief, the internals clearly reflect the uneven and slow recovery. We expect recovery to gather pace in Q4 as has been borne out by the quarterly earnings (in Q3) for most of the large and mid-corporates. Basis today’s GDP print, full year GDP numbers in our view are tracking the -6 to -7.5% band.

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