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February 26, 2021 / 10:01 PM IST

India GDP Data Highlights | GDP in positive trajectory a promising sign: India Inc

The National Statistical Office (NSO) has released the gross domestic product (GDP) growth estimates (October-December) quarter of the current financial year. India's GDP for Q3FY21 is at 0.4%

The National Statistical Office (NSO) has released the gross domestic product (GDP) growth estimates (October-December) quarter of the current financial year.

Has the Indian economy rocketed back to positive growth? Which are the sectors that have revived faster? Which are the laggard sectors? What has been the pace of infrastructure project execution? How far is the manufacturing sector from

reaching pre-Covid levels?

The national income statistics will offer cues on some of these questions.

  • India GDP Data Highlights | GDP in positive trajectory a promising sign: India Inc
    Representative image
  • February 26, 2021 / 08:26 PM IST

    India GDP LIVE Updates | Mr. Raghvendra Nath, Managing Director, Ladderup Wealth Management- 

    The overall economy of the country is hurtling back to normalcy and these numbers are on expected lines. India is very well positioned to bring its Economy back on track thanks to a successful containment of the pandemic across the country. The Economic growth in the coming year is expected to remain robust with a broadbased momentum across various sectors. The government’s focus on infrastructure, real estate demand on the back of low-interest rates, recovery in commodity prices, and healthy consumption expenditure all point out to good times for the GDP. The private and foreign investment is also on the rise and capex should be higher than the previous years, aiding the long term growth.

  • February 26, 2021 / 08:23 PM IST

    India GDP LIVE Updates | Dr. M Govinda Rao Chief Economic Advisor, Brickwork Ratings- 
    The second advance estimate and the third quarter estimate of GDP released by the Ministry of Statistics and Programme Implementation (MOSPI) are on expected lines.  The estimate of 1% growth in GVA and 0.4% growth in GDP marks the ending of the recessionary phase.  In fact, all the sectors except (i) Mining and Quarrying, (ii) Trade, Hotels, Transport and communication services and (iii) Public administration, defence and other services have recorded positive growth in the third quarter.

  • February 26, 2021 / 08:11 PM IST

    India GDP LIVE Updates | Mr. Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Co Ltd-
    "With Q3FY21 GDP growth turning positive, the strong recovery can surely be deemed as nothing less than ‘outstanding’, as we are the only third economy posting growth for the quarter amongst 16 major World economies. This GDP reading clearly testifies the resilience of the Indian Economy vs its global counterparts and reinforces the strong fundamentals of the country. The Indian economy has seen a sharp rebound from the onslaught of the Covid-19 pandemic, thanks to the financial vaccine administered by the government and central bank in the form of Quintessential fiscal reforms and monetary policy support along with the mega vaccination drive. With Pro-growth budget reforms and RBI’s resolve to support the financial markets and economy, the Indian economy is well poised to ride the long term structural growth path."

  • February 26, 2021 / 08:07 PM IST

    India GDP LIVE Updates | Mr. Rohit Poddar, Managing Director, Poddar Housing and Development & Joint Secretary, NAREDCO Maharashtra- 
    With the unlocking of the economy, the operations were expected to scale up leading to revenue generation. This is reflecting in the Q3 economy data citing the recovery after two quarters. The service sector needs to be mobilized for GDP to expand at an accelerated pace. The nation-wide vaccination drive may help bring normalcy to the services sector. 
    Apart from the agricultural output which was aided by a normal monsoon year, the construction and real estate sector output helped the GDP growth. The high traction in the real estate sector was on the back of the reduction in stamp duty and other levies in the state of Maharashtra. This has played a crucial role in attracting home buyers to invest in homes and pushing the real estate market towards a higher growth trajectory

  • February 26, 2021 / 08:02 PM IST

    India GDP LIVE Updates |  Nikhil Gupta, Economist - Institutional Equities, Motilal Oswal Financial Services Ltd- 

    India's real GDP grew 0.4% YoY in 3QFY21, primarily because of downward revision (from 4.1% to 3.3%) in 3QFY20. Without base revision, there was a decline of 0.6% YoY in the quarter. The consensus was +0.5% and our forecast was -0.7%. Investments were the primary driver (up 2.1% YoY vs. a fall of 28.2% in 1HFY21) of better GDP growth in 3QFY21, while consumption (down 2.2% YoY vs. a fall of 16.7% in 1HFY21) remained a laggard. Nominal GDP grew strongly at 5.3% YoY last quarter, implying that GDP deflator was 4.8% YoY in 3QFY21. Surprisingly, CSO expects a contraction of 1.1% YoY in 4QFY21, implying 8% fall in FY21. This is highly unlikely. We believe real GDP could grow 3.5% in the current quarter, leading to a decline of 6.7% in FY21”

  • February 26, 2021 / 07:48 PM IST

    India GDP Data LIVE Updates |  Dr. Joseph Thomas, Head of Research - Emkay Wealth Management- 

    The Q3 GDP number indicates growth at 0.40 %, reflecting the recovery in growth across a spectrum of sectors. Finally, economic growth is in the positive territory. But the trajectory of growth would depend to a significant extent on the efficacy with which the second wave of the pandemic is contained, if it happens, as appropriate growth supporting fiscal and monetary policies are already in place. There are sectors like education, hotels and restaurants and travel and tourism , which are yet to be open fully and there are short term lockdowns in several cities as of now. If it deepens further then Q4 growth may be impacted.

  • February 26, 2021 / 07:24 PM IST

    India GDP LIVE Updates | Sanjay Kumar, Partner, Deloitte India- 
    The latest GDP data for the third quarter FY ending 2021 is in line with the overall estimates as presented in the budget figures for FY 20-21. This was the quarter when the economy was reopening tentatively. Impact of Q1 and Q2 is still there. It is still taking time to wear off.
    My understanding is that the real push will come in the Q4 2021, because lockdowns on many sector, particularly hospitality and travel eased substantially during this quarter. It is hoped that it remains that way, given the uptick in Covid19 cases in some pockets and in some states. Important to note that the states coming under uptick constitute large part of industrial activity, and that is important for Q4 and the next financial year.

  • February 26, 2021 / 07:12 PM IST

    India GDP LIVE Updates | Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research:  

    "The Q3GDP of 0.4% is in line with our forecasts and reinforces our expectations on the ongoing economic revival in India. It also formally marks the end of the recessionary environment triggered by the global pandemic. Private consumption has grown strongly on a QoQ basis by 18.5% in Q3 and is lower by only 2.3% compared to that in Q3FY20. What is encouraging is the YoY growth in gross fixed capital formation by 2.58% which implies that the focus on enhanced capital expenditure by the government has started to yield dividends. This is further reinforced by the healthy growth in construction GVA of 6.2% and 21.9% on a YoY and QoQ basis respectively. It is heartening to note that the trade, hospitality and transport segment GVA which has been the most affected due to lack of mobility, has grown by 13.1% on a QoQ basis and has exceeded over 90% of that in the previous year, reflecting the improvement in mobility indicators. The momentum in the manufacturing sector is however, a bit of concern ; while manufacturing GVA has moved back to positive territory, growing 1.6% on a YoY basis, it has partly benefited from a lower base in the previous year."

  • February 26, 2021 / 07:11 PM IST

    India GDP LIVE Updates | Krish Raveshia, CEO at Azlo Realty  

    "Q3 growth rate swinging back in the positive territory is in line with most estimates, supported by high government spending, reform measures, and progressive unlocking. A good monsoon and supply-side concerns addressed reflected positively on agriculture output.

    The stamp duty cut announced by the Maharashtra state government and the subsequent high sales witnessed is reflecting in the performance of construction, finance, insurance, and the real estate components. The real estate sector has a multiplier effect on the economy, had a positive impact on the steel and cement sector too. The pace of vaccination, stable interest rates, bond yield, and unlocking measures will guide the growth rate for Q4FY21 and FY22."

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