India Economy Watch - Real GDP Grew 8.4% In Q2: Motilal Oswal

India Economy Watch - Real GDP Grew 8.4% In Q2: Motilal Oswal

Workers transport goods at Khari Baoli spice market in New Delhi, India. (Photographer: Ruhani Kaur/Bloomberg).

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Real gross domestic product/gross added grew 8.4%/8.5% YoY in Q2 FY22 (versus our forecast of 8.2%/7.8% and Bloomberg consensus of 8.3%/7.6%).

While fiscal consumption grew 8.7% YoY in Q2 as against a decline of 4.8% YoY in Q1, private consumption spending grew 8.6% YoY in Q2 (lower-than-expected) versus 19.3% YoY in Q1 FY22.

Consequently, total consumption expenditure contributed 5.6% to real GDP growth. On the other hand, Gross Capital Formation grew 17.2% YoY in Q2 FY22 (higher-than-expected), contributing 5.8% to real GDP growth.

As for external trade, while exports grew only 19.6% YoY in Q2 FY22, imports grew faster by 40.6% YoY. Therefore, net exports contributed down 4.4% to overall GDP.

Discrepancies contributed another 1.4% to overall real GDP growth in Q2 FY22. Nominal GDP grew 17.5% YoY in Q2 FY22 as against a contraction of 4.4% YoY in Q2 FY21.

Click on the attachment to read the full report:

Motilal Oswal Ecoscope GDP.pdf
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