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Below is perspective on Q2 July to September GDP Data for FY22 by Ms. Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India.

“The improvement in GDP growth in Q2 FY22 is on expected lines. With increased vaccination and economy moving back to normalcy, most high frequency economic indicators have bounced back above pre-COVID levels. Corporate performance as reflected by quarterly results have also been showing healthy improvement in the economy.While consumption has recorded an improvement, a more broad-based consumption recovery would be critical for sustainable and inclusive growth. For that to happen it will be critical for the unorganized sector and the MSME segment to also bounce back quickly. While capacity utilization levels would have improved in the last quarter, private investment may still take time to recover as corporates and banks remain risk averse given the looming uncertainties. High commodity prices and global supply bottlenecks would pose a challenge for the manufacturing sector. The emergence of the new COVID variant has infused uncertainty in the system. If this uncertainty lingers or aggravates, it would adversely impact business and consumer sentiments, with repercussions on the economic growth”.

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