India's Economic Activity Slows In September: Motilal Oswal
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Motilal Oswal Report
Our in-house Economic Activity Index for India’s real gross value added (called EAI-GVA) grew at the seven-month slowest pace of 5.4% YoY in September 2021, after posting 10–12% YoY growth in July/August 2021.
This implies EAI-GVA growth of 9.2% YoY in Q2 FY22, following all-time high growth of 20.3% YoY in Q1 FY22.
Modest growth in the farm and non-farm sectors led to lower GVA growth last quarter.
Similar to EAI-GVA, EAI-gross domestic product also grew at just 2.2% YoY in Sep-21, compared with 8.7%/13.3% YoY in July/August-21. This led to growth of 8% YoY in Q2 FY22, against 20.4% YoY in Q1 FY22.
This was driven by moderation in investment and consumption activity during the quarter.
Total consumption remained stable at ~10% on account of 61.8% YoY growth in government spending in Sep-21. Private consumption, in fact, grew at the three-month slowest pace of 6.3% YoY in Sep-21.
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