You are here: Home » Opinion Ā» Columns
Growth challenges
icon-arrow-left
Today, India commences its G20 presidency
Business Standard

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

Topics
GDP | India GDP growth | Indian Economy

Gaura Sen Gupta 



Gaura Sen Gupta

The pandemic, which was once in a lifetime shock, has made even relatively stable datasets such as 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 growth improved to 2.5 per cent in Q2FY23 as against 1.3 per cent in Q1FY23. This was despite tighter financial conditions, decline in company profitability and export growth slowdown. So, you may ask: How did growth improve in Q2? The answer lies in a combination of transmission lags, services growth recovery, and continued support from urban consumption.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Wed, November 30 2022. 22:27 IST

RECOMMENDED FOR YOU

.