Economists project 7.8 to 8.3% GDP growth for Q2FY22

Economists opine that India’s real GDP must have grown year-on-year (y-o-y) in the range of 7.8 to 8.3 per cent in the second quarter of 2021-22. They believe that besides strong base effect, real expansion of the economy would have helped growth to accelerate in the September 2021 quarter. As per a report in Hindu Businesslines, while demand has picked up for manufactured products and services, improved expenditure by the government in August-September period also aided growth. A report by the State Bank of India has projected second quarter growth at 8.1 per cent, while HDFC Bank has projected GDP growth rate at 7.8 per cent on year-on-year basis. On sequential basis, HDFC expects GDP to grow by 9.8 per cent in the second quarter from a contraction of 16.9 per cent in the first quarter, reflecting a revival in economic activity supported by pent-up demand, a pick-up in vaccination drive and eased second wave related restrictions. On the back of a strong sequential pick-up, economist at QuantEco has estimated GDP growth for the September 2021 quarter at 8.5 per cent on y-o-y basis.