Will GDP contraction impact investments in India?
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Description
The economy contracted by 7.3% in FY21, its first contraction in four decades. India’s real GDP grew 1.6% in March quarter. Private consumption, which accounts for more than half of GDP, improved to 5-quarter high in March quarter. GDP for FY21 and fourth quarter indicated that unlocking of business operations drove economic growth for two quarters, confirming growth momentum had started to build in since July. Also, India’s fiscal deficit for FY21 was lower than the revised estimate by government. How will investors interpret the macro data, does the economic glide path look shaky in FY22. To understand that Mint's Nasrin Sultana is joined by Arvind Chari, Chief Investment Officer (CIO), Quantum Advisors India.
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