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Below are Views on GDP data by Vivek Goel, Co-founder and Joint Managing Director, Tailwind Financial Services Limited

“The GDP growth in Q4 was in line with expectations even as it indicated that the economy is seeing only a gradual recovery.  Real GVA growth in Q4FY22 came at 3.9% supported by services sector which grew at 5.5% (slowing from 8.1% in Q3) driven by public admin, defense & other services growth. Agriculture and allied services growth improved to 4.1% (2.5% in Q3) Government consumption grew at 4.8% (Q3: 3.0%) and investment growth at 5.1% (Q3: 2.1%) provided support even as geopolitical risks and impact on commodities continued to weigh on growth prospects”

While the economic outlook remains clouded with uncertainties especially with escalating crude oil prices, ongoing geopolitical issues, supply disruptions, high commodity prices, inflation and monetary tightening, there are positive indicators like high forex reserves, government’s continued focus on capex and improved agriculture growth owing to higher realizations in cultivation income which are expected to act as tailwinds that can support GDP growth and keep India one of the fastest growing major economy of the world in FY22-23. Slowdown in global growth, elevated energy prices, rising interest rate cycle and tightening of financial conditions will be key headwinds.”

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