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India Q2FY23 GDP: Looking beyond the noise

The Q2FY23 GDP numbers are unlikely to change the policy focus of RBI from withdrawing accommodation, with growth being in line with expectations

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Gaura Sen Gupta
The pandemic, which was once in a lifetime shock, has made even relatively stable datasets such as GDP difficult to analyse. If one were to depend solely on year-on-year (YoY) growth rates, it would appear growth slowed to 6.3 per cent in Q2FY23 from 13.5 per cent in Q1FY23. However, the slowdown is partly a play of base effects, which have distorted the YoY growth momentum. To overcome the distortion, we look at a three-year compound annual growth rate (CAGR), which will compare recovery with the pre-pandemic period, or Q2FY23 over Q2FY20. On this metric GDP growth improved to 2.5
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Nov 30 2022 | 10:27 PM IST

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