SBI Research: Q1 GDP Reveals Deeper Malaise; Estimate Real GDP At -10.9% In FY21

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..SBI Research Report.India’s Gross Domestic Product growth pluged to 23.9% in Q1 FY21 due to the nation-wide lockdown imposed on March 25, 2020 in the wake of Covid-19 pandemic and is much worse than market and our estimates.This is India's worst growth performance since the country stated reporting quraterly GDP data in 1996.In the 2004-05 base, India’s lowest quarterly GDP growth was 1.66% in Q3 FY03. Till now GDP growth data of 60 countries has been released.Apart from China and Vietnam all economies exhibited decline in growth.The average decline of economies in April-June 2020 is 12.2% as compared to 1 4.% decline in January-March 2020.The only saving grace in these times is the growth of 3.4% in agriculture and allied activities, though the growth in nominal Agri GDP was at 5.7%, as against an average 13 5.% in previous two quarters.This was expected as from the beginning itself Government has imposed least restrictions on this sector.Also till June 2020 the spead of Covid-19 was primarily in urban areas and rural areas were almost unscatched from the pandemic.However, Q2 could see a reversal of sorts with rural areas now in grip of Covid-19.Industry is the worst affected sector with decline of 38 1.% in Q1 FY21 as compared to 4.2% growth in Q1 FY20.Services sector exhibited a decline of 20.6% in Q1 FY21 in comparision to 5.5% growth in Q1 FY20..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI Research: Q1 GDP Reveals Deeper Malaise; Estimate Real GDP At -10.9% In FY21

SBI Research: Q1 GDP Reveals Deeper Malaise; Estimate Real GDP At -10.9% In FY21

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