Omicron a mere speed breaker for GDP, vaccination drive will quell impact

While the non-services segments are expected to accelerate in Q3 and Q4, the omicron effect can play a role in guiding growth of services

GDP growth for the second quarter was going to be important from the point of view of the swiftness with which the economy would clock growth of around 9.1 per cent or higher for the full year. The rather vibrant consumer demand story that unfurled around September was the starting point of this optimism considering that the services sector was opened up with alacrity subsequently in October and November.

GVA growth at 8.5 per cent is impressive, though it comes over a negative base effect. However, when compared with growth in say Q2FY20, which was 4.6 per cent, this number