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Below The Comment on GDP Data by Anitha Rangan, Economist, Equirus Securities

GDP at 6.5% came in in-line with previous estimates. However the marginal surprise was lowering of nominal GDP growth to 9.8% from 9.9%. Alongside we observe that GCF/GDP moderates to 32.9% from 33.4%. While consumption has improved, moderating capital spending is also a reflection of moderation in net savings. While savings to GDP has remained unchanged in FY24 at 30.7% versus FY23, with HH savings moderating from 18.6% to 18.1% in FY24 (with increase in net liabilities), prospectively we do not see any meaningful improvement in FY25. Prospectively with HH liabilities moderating, net savings should see an improvement.

 In terms of sectoral growth, agriculture, construction has shown meaningful recovery with services holding up while manufacturing sector at 4.5% yoy remains the key drag.

 A key positive is at an aggregate level and for most sectors except manufacturing and mining, there is a reasonable continued growth from prepandemic levels. CAGR yoy growth from pre-pandemic levels of 5.3% from 5% last year indicates that there is a structural recovery that has set in. While not upto potential, but nevertheless the growth engine continues to roll.

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