Quick Summary
Q2 GDP at - 7.5% buttresses recovery as captured by several high-frequency indicators. Economic impact is primarily due to #COVID19, good news is falling daily cases are due to lower transmission & not due to lower testing. To sustain economic recovery, caution must continue - FM
FM Says:
- High PMI Indices for Manufacturing and Services with manufacturing PMI at a decadal high
- Broad-based recovery is underway
FM Says:
- Index of Industrial Production enters positive territory
- Index of 8-core industries regains previous year levels in September
V-shaped recovery in use-based Industries especially in consumer goods, especially consumer durables, and investment, especially capital and infrastructure goods suggest a strong revival of both consumption and investment, which together account for about 90% of India’s GDP – FM
Corporate sector back on track in Q2 2020-21 after two quarters of contraction, level of operating profits similar to that in Sep 2018 - FM
FM Says:
- Steel production and consumption gathers momentum signalling revival of construction activity.
- Power consumption and E-way bills clocked double digit growth in October suggesting buoyancy in industrial and commercial activities
FM Says:
- Recovery ignites optimism, but a cautious optimism
- Sustainability of the recovery critically depends on keeping the pandemic in control
FAQ :
The GDP contracted by 7.5% in the second quarter of 2021.
The economic impact was primarily due to COVID-19.
Yes, several high-frequency indicators, including high PMI indices for manufacturing and services, positive industrial production, and recovery in key industries, suggest a broad-based recovery is underway.
The Finance Minister stated that caution must continue and the sustainability of the recovery critically depends on keeping the pandemic under control.
The corporate sector is back on track in Q2 2020-21 after two quarters of contraction, with operating profits similar to September 2018 levels.
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