India GDP Preview - Q1 FY22 GDP At 16% On Relatively Quick Recovery: Nirmal Bang

A worker cuts stem of bananas before sanitizing them in water and aluminium sulfate during a harvest in Jalgaon, Maharashtra. (Photographer: Dhiraj Singh/Bloomberg)

India GDP Preview - Q1 FY22 GDP At 16% On Relatively Quick Recovery: Nirmal Bang

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Nirmal Bang Report

We peg gross domestic product growth for Q1 FY22 at 16%, up from our earlier estimate of 10% on a relatively swift recovery in June 2021 as the economy opened up after the second Covid-19 wave in India.

In addition, since lockdowns were mainly concentrated in May 2021, the economy was functioning at least at 90% capacity even as the second wave was hitting a peak.

Finally, while the formal economy was resilient amid the second Covid-19 wave, even the informal manufacturing economy did not go into a complete shutdown, unlike in Q1 FY21.

With the better-than-expected performance in Q1 FY22, we raise our GDP forecast for FY22 to 8.5% from 7% earlier.

Our gross value added forecast for FY22 stands at 8.3%.

Click on the attachment to read the full report:

Nirmal Bang Q1FY22 GDP Preview - Economy Update- 23 August 2021.pdf

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