India's GDP came in at 8.4% for the second quarter ending Sept 30, 2021, slightly higher than estimates made by analysts. A Reuters survey of 44 economists projected GDP growth of 8.4% year-on-year growth in the September quarter. SBI Research had said that the forecasted GDP growth for Q2 would be around 8.1%.
"GDP at Constant (2011-12) Prices in Q2 2021-22 is estimated at Rs 35.73 lakh crore, as against Rs 32.97 lakh crore in Q2 2020-21, showing a growth of 8.4 percent as compared to 7.4 percent contraction in Q2 2020-21," a release stated.
The farm sector grew at 4.4%, thus surprising most analysts. The gross value added too was better than estimates at Rs 32.89 lakh crore, as against Rs 30.32 lakh crore in Q2 2020-21, showing a growth of 8.5 percent. Core sectors grew at 7.5% in October versus 4.5% in September and (-)0.5% in October last year. Construction grew 7.5% in the second quarter, compared to 68.3% in the preceding quarter.
The RBI has forecast annual growth of 9.5% in the current fiscal year. While the Q2 GDP numbers are slightly better than estimates, investors continue to worry over a fresh round of infections caused due to the Omicron.
The World Health Organization on Monday said the variant poses a "very high" global risk that could have "severe consequences" given that some of its mutations may sidestep immune protection and suggest greater transmissibility.
Investors would continue to watch if this variant continues to impact the global economy and the Indian economy going forward.