India GDP posted a mildly positive growth of 0.4%YoY in Q3 FY21 after a hiatus of 2 quarters to finally exit a technical recession.
Download ReportIndia Q3FY21 GDP - Shifting gears Reverse to Drive
India’s GDP posted a mildly positive growth of 0.4%YoY in Q3 FY21 after a hiatus of 2 quarters to finally exit a technical recession. This was broadly in line with our expectations. The return to positive growth is remarkable especially since it has occurred almost a quarter earlier than was envisaged 3-6 months back and in comparison to record contraction of 24.4% and 7.3% in Q1 and Q2 respectively. The brisk sequential recovery in Q3 FY21 can be attributed to - pickup in manufacturing, construction and real estate activities as the economy underwent a gradual unlock and labour mobility normalised, pent-up and festive consumer demand getting bunched up and mercifully an absence of a second wave of virus in India alongside a few policy initiatives especially for the real estate sector. Further, accelerated progress on vaccine and its rollout in Q4 has buoyed consumer and business sentiment. In this spirit, underscoring the strength of the V-shaped recovery, a gamut of lead indicators either surpassed or were in striking distance of pre-COVID levels by the end of CY20.