The first quarter GDP numbers for FY 2022, which came in at 20.1% has left room for optimism, according to experts, though the numbers were largely in line with estimates they say.
"The better-than-expected GDP numbers are room for optimism, especially the growth in the construction sector augur well for the economy. It should result in an increase in credit offtake. There could be some inflationary pressures in the short term. We also see a good pickup in industrial activity across all our clients from varied sectors and remain optimistic on a continuing upswing in the economy. It will be interesting to watch how the Central Bank now looks at the interest rates in its next review, and if tapering is likely to happen even in India," says D.R.E Reddy, CEO and Managing Partner, CRCL LLP.
According to Ram Raheja - Director, S Raheja Realty with the double-digit growth in Q1FY22, the strong recovery can surely be deemed as nothing less than outstanding despite a low base.
"This GDP reading clearly testifies the resilience of the Indian Economy vs its global counterparts and reinforces the strong fundamentals of the country. The Indian economy has seen a sharp rebound from the onslaught of the Covid-19 pandemic, supported by high government spending, reform measures, monetary policy support, progressive unlocking along with the mega vaccination drive.
Based on the estimates, there has been an improvement in the construction sector growth YoY given the economic activities were at a standstill last year. With various reforms and RBI's resolve to support the financial markets and economy, the Indian economy is well poised to ride the long term structural growth path," he says.