India's annualized Q2 FY22 GDP growth print came close to our expectations, at 8.4% from a record high print of 20.1% YoY, outpacing economic growth in major DM and EM economies.
From the demand side, GVA also registered a similar outturn with annualized print clocking a growth of 8.5% in Q2 FY22 from 18.8% in Q1 FY22. The expansion is primarily driven by a sharper growth in services (10.2% YoY) followed by agriculture sector (4.5% YoY).
On sequential basis, post the second wave driven contraction in Q1 FY22, the GDP and GVA print have recorded an expansion of 10.4% and 7.9% respectively. The sequential revival in economic activity was clearly reflected in our proprietary AMEP (Acuité Macroeconomic Performance) index expanding by 7.2% QoQ in Q2 FY22 from a contraction of 9.3% in Q1 FY22. Growth momentum in the month of Oct-21, as also highlighted in our AMEP index, saw considerable upside with most high frequency indicators recovering above their pre-pandemic levels (for further details refer: https://www.acuite.in/pdf/PR_Index_Oct-21.pdf).
For FY22, we continue to retain our GDP growth forecast at 10.0% albeit with some downside risks
Alternatively, read here: https://www.acuite.in/pdf/PR_Q2GDP_Nov-21.pdf