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Below is Perspective on Q2 GDP data By Mr. Nikhil Gupta, Chief Economist at Motilal Oswal Financial Services

“India's real GDP grew 8.4% YoY in 2QFY22/3QCY21, marginally better than our/market forecast. A comparison of India vis-a-vis other major nations reveals that while 3QCY21 growth is the highest in India, it is right in the middle - almost flat - on 2-yr CAGR basis.

 GDP details suggest that while Private consumption grew slowly than expected, investments grew slightly higher.

 From GVA perspective, while farm, construction and public administration & defense services (PADS) grew faster than expected, it was partly offset by weak manufacturing sector. The sharp improvements in the farm and PADS sectors were the surprise in today's release, which pushed real GVA growth higher than expected.

 Nevertheless, the broad story remains intact. With weak household sector, consumption may continue to lag. Accordingly, we believe that real GDP growth could be 5-5.5% in 2HFY22, implying full-year FY22 growth of ~9% or just 1% higher than in FY20.”

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