New Delhi: India`s real GDP is expected to grow at 8-9 per cent year-on-year (YoY) in Q2FY22, Motilal Oswal Financial Services (MOFSL) said. The real GDP is the inflation adjusted figure of all the finished goods and services produced in a country within a specific time period.
In a report, MOFSL said its in-house estimates suggest India`s real GDP grew at 8-9 per cent YoY in Q2FY22, marginally higher than “our expectations”.
The second quarter GDP numbers have not yet been released. The macro-economic data points are slated to be released on November 30.
MOFSL said: “Looking at our EAI estimates, we believe that better growth was largely supported by massive government spending in 2QFY22.”
Besides, the report said the economic activity for October 2021 appeared promising.
“Most of the indicators – PMI manufacturing, toll collections, e-way or vahaan registrations, mobility indicators, and power generation – improved last month.”
However, the brokerage house`s preliminary estimates indicate that Economic Activity Index (EAI) for India`s GVA posted a seven-month low growth of 5.4 per cent YoY in September 2021 versus 11.7 per cent YoY in August 2021.
“Consequently, EAI-EVA grew 9.2 per cent YoY in 2QFY22 on account of lower growth in the aFarm and Non-Farm` sectors. Also Read: 7th Pay Commission: Central government employees’ salaries could increase by Rs 8,100, here’s why
This further indicates the favourable base effect is waning off. Also Read: IndiGo Recruitment 2021: India’s biggest airline invites applications from fresh engineering graduates