Why GDP expansion by 20.1% in Q1 of FY22 is misleading

India’s serious GDP expanded by a history-substantial twenty.1 per cent in yr-on-yr (YoY) terms in Q1 FY2022, in line with our very own forecast of twenty. per cent. As predicted, the distorted foundation of last year’s stringent nationwide lockdown obscured the devastation of the next wave of Covid-19 that was accompanied by staggered condition-sensible constraints in Q1 FY2022.

Nevertheless, the sharp YoY enlargement in that quarter is analytically deceptive, as the serious GDP in Q1 FY2022 not only posted a sequential slowdown of 16.nine per cent around This fall FY2021, but also trailed the pre-Covid level of Q1 FY2020 by a considerable nine.two per cent.

The NSO has pegged the GVA progress in Q1 FY2022 at 18.eight per cent,driven by the dizzying YoY enlargement in marketplace (forty six.1 per cent), led by manufacturing (49.6 per cent) and building (sixty eight.three per cent),followed by a comparatively sedate overall performance of solutions

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