InvestorQ : How do you see the 20% GDP growth in the June quarter? Is it positive?
diksha shah made post

How do you see the 20% GDP growth in the June quarter? Is it positive?

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Mahima Roy answered.
3 months ago
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The GDP growth for Jun-21 quarter came in at 20.1%, which is largely what the economists were expecting because they had pegged a range of 18-22%. However, there is a base effect at play here as the GDP had fallen by -24.4% in Jun-20 quarter. That means, the absolute GDP in Jun-21 is still below the Jun-19 levels of pre-COVID growth. In fact, this number could have been much better if it had not been for the COVID 2.0 disruption of business.

One key inference is that overall trade, represented by exports plus imports, was the big driver of growth. Even as major IIP components like mining, manufacturing and electricity are below 2019 levels, it was the combination of exports and imports that was driving the GDP higher.

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