Q2 likely to see 7.5% GDP growth; election impact in Q3 and Q4

Gross fixed capital formation has more or less chased GDP growth

Overall GDP numbers are kind of expected. We already knew manufacturing was doing well in the first quarter as shown by the index of industrial production (IIP). We also knew there was low base effect in manufacturing, which is why you get 13%-plus growth, which was a significant contributor to the 8.2 per cent GDP growth. The surprise is agriculture. I was expecting a growth of around 3.5%, but it turned out to be over 5%.

The other big surprise is construction, which for many years was stagnating and suddenly has recorded a 7% growth. Public investment in infrastructure and