What is your quick take on the GDP number for FY21?

GDP for the fourth quarter and the full year FY21 were announced on 31 May. India’s GDP growth for the fourth quarter ended Mar-21 came in at +1.6%. This is the second positive quarter after 2 consecutive negative quarters in Q1 and Q2. The full year GDP contraction for FY21 was better than expected at -7.3% since even the RBI and the NSO had pegged GDP contraction for FY21 in the range of -7.5% to -8.0%.

For the full year FY21, only agriculture and public utility services grew positively while other components showed de-growth. In Q4, manufacturing rebounded by 6.9% due to base effect. However, the MOSPI statement is itself quite clear that the full impact of COVID 2.0 may be just about beginning to show.