BENGALURU, May 31 (Reuters) - India’s economic growth picked up to 1.6% year-on-year in the January-March quarter, official data showed on Monday, before a harsh second wave of COVID-19 hit the country last month.
The read-out for the March quarter was faster than the 1.0% growth forecast of analysts in a Reuters poll and upwardly revised 0.5% growth rate for the previous quarter.
While the second wave of infections has been much more severe, the absence of a stringent nationwide lockdown has been a positive.”“The impact during the second wave has been more pronounced on consumer sentiment and mobility rather than economic activity.
We expect FY22 GDP growth at 10.5% vs our earlier estimate of 12.5%.”MADHAVI ARORA, LEAD ECONOMIST, EMKAY GLOBAL FINANCIAL SERVICES, MUMBAI“The better-then-expected growth print partly owes it to healthy corporate results in March quarter of FY21.
We admit the situation is still in a flux, and it is too nascent to gauge the true impact of the second wave on macro variables.
SAKSHI GUPTA, ” GARIMA KAPOOR, ” MADHAVI ARORA, ”