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Below is Perspective on Q1 GDP Data for FY22 by Ms. Rajani Sinha, Chief Economist & National Director - Research, Knight Frank India

“The sharp growth in Q1 GDP is mainly because of the very low base of last year, when the economy was under a national lockdown. On a sequential basis, most parameters of GDP have fallen in Q1 FY22, due to the adverse impact of the second wave of the pandemic on the economy. However, the adverse impact of the second wave of the pandemic on Q1 FY22 GDP is relatively muted when compared to the impact of first wave and this is also getting reflected by other high frequency economic indicators. The comforting factor is that the investment to GDP ratio has remained above 30% as against a low of 24% touched in Q1 FY21. Pick-up in exports as reflected by the GDP break-up, is a positive signal and is in line with pick-up in global economic growth. Going forward, it will be critical to watch the pick-up in consumption GDP as the consumer sentiments revive. The pick-up in pace of vaccination and movement towards normalcy will aid revival in consumer and business sentiments.“

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