Quote on GDP Data by Rajeev Sharan, Head of Research, Model Development & Research, Brickwork Ratings
Below the Quote on GDP Data by Rajeev Sharan, Head of Research , Model Development & Research, Brickwork Ratings
"Real GDP growth of 7.8% in Q1 FY27, against 6.9% a year earlier, is led by a genuine revival in investment. Gross fixed capital formation grew 11.9% in real terms, and its share of GDP rose to 34.3% from 31.4%. Services added 10.0%, with financial, real estate and IT services at 12.1%, while manufacturing gained 9.2%. Two qualifications are worth noting. Nominal growth of 10.3% implies a deflator of barely 2.5%, so soft prices are flattering the real number, and a fall in real imports has added mechanically to the total. With a harder base through the second half and softer external demand, we do not expect this pace to be sustained and retain FY27 growth estimate at around 6.7%.
The June Index of Services Production corroborates the services strength. Eighteen of its 19 sub-sectors grew, eight in double digits, led by real estate at 24.7%, retail trade at 18.0% and wholesale trade at 15.1%, with IT services at 13.5% and banking at 11.4%. The sole contraction is air transport at -6.0%. The ISP remains a trial series without a composite headline, so it is best read as a cross-check on direction."
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