Speaking on the Q1FY22 GDP numbers, Siddhartha Sanyal, Chief Economist and Head of Research at Bandhan Bank said, “The 20.1% year-on-year growth in GDP during Q1 2021-22 is broadly on expected lines. While this is a sharp uptick optically, this should not lead to any exuberance as the statistical effect of the 24.4% contraction in the corresponding quarter of the previous financial year played a dominant role in pushing the current print higher.”
“Going ahead, without any fresh headwinds as regards the Covid-19 scenario, GDP growth is expected to hover around the mid-single-digit zone. Overall, the need for continued policy support for the real economy remains strong given the nascent and uneven nature of the recovery. Progress of vaccination will likely remain a key factor in ensuring medium-term sustainability of the recovery in economic activities,” Sanyal added.
