Q2 GDP 2022-23: Agriculture Numbers A Surprise, Growth To Remain Resilient

India's Q2 GDP 2022-23, which came in at 6.3% was largely in line with estimates, according to analysts and economists and slightly above a Bloomberg survey of economists, who had estimated GDP to have risen 6.2% in the three months to September from a year ago.

According to Nish Bhatt, Founder & CEO, Millwood Kane International the Q2 growth at 6.3% vs 8.5% YoY was largely in line with the consensus estimates. "The stable growth rate is largely on account of robust GST collection witnessed in the past few months, and the fact that we witnessed lower imports. The GVA growth correctly reflects the slowdown in activities like manufacturing, mining, and construction," he stated.

According to him, the agriculture growth was a positive surprise that in a part lent support to the growth rate. "The key sector like manufacturing construction, trade & hotels needs to recover to meet the RBI's estimate for FY23. With the inflation softening and RBI at the end of the rate hike cycle, expect the growth rate to recover in the remaining two-quarters of FY23," he stated.

According to Ritika Chhabra- Economist and Quant Analyst, Prabhudas Lilladher Pvt Ltd, the GDP grew by 6.3% y-o-y, in line with the expectations. "We are observing normalization in growth rates compared to the previous quarter due to waning covid effect. The private consumption growth remains robust. The growth is expected to remain resilient despite global headwinds on the back of strong domestic demand," she stated.