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Below is perspective on the GDP Numbers by Mr. Pankaj Bhansali, COO, Eqaro Surety Pvt Ltd

“The growth rate for the Jan-March quarter stood at 1.6%, it is a lot better than most expectations. The support mainly came from agriculture and manufacturing, construction, utilities segment. As expected trade, hotel and transport component of the economy delivered a major hit to the growth rate as it faced the most stringent lockdown. The full year FY21 GDP is a positive surprise as it contracted by 7.3% vs the CSO's estimate

of -8%.

Statistically it is the first yearly economic contraction in nearly 40 years but on ground situation has improved a lot and the data could have been lot worse had it not been the progressive unlocking undertaken by the respective state governments.

The better than expected data will provide relief to the central bank as it announces its credit policy later this week. Moving forward the situation is expected to improve with few states relaxing curbs. A prediction of a normal monsoon year by IMD will keep inflation in check. The upcoming festive season will provide a pickup in demand. The consistent high number of vaccination and number of cases coming down is a sentiment booster. Broadly the economic growth rate will see an uptick from Q2FY22 onwards”.

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