INSUBCONTINENT EXCLUSIVE:
official data on Tuesday showed, rebounding from a deep slump last year, helped by improved manufacturing in spite of a devastating second
impact of the second COVID-19 wave better reflected in the sequential contraction
Numbers were also partly influenced by seasonal distortions (i.e
end FY-March quarters).""Agricultural output proved to be resilient, alongside better construction and manufacturing activity owing to less
stringent localised restrictions versus the first COVID wave, whilst contact-intensive services lagged."Sreejith Balasubramanian, Economist
the reading was slightly below consensus and also reflects a high GDP deflator.""Vaccination progress will be crucial, given the possibility
of a third wave of infections and the experience of countries which witnessed it
Support from rural, particularly agriculture, needs to be monitored given the fluctuations in monsoon rainfall and its impact on reservoir
levels and crop harvest."Upasna Bhardwaj, Senior Economist, Kotak Mahindra Bank, Mumbai"The GDP figures for the first quarter came in
However, economic activity has been reviving since July and has picked up momentum
As vaccination pace picks up we expect the momentum to pickup further, although remain wary on the evolution of delta variant cases."
