WEBINAR ON DEMAND:

Webinar Overview

India’s real GDP increased by 1.6% y/y in Q1 2021, expanding further from Q4 2020 that registered a growth of 0.5% y/y, thereby registering a decline of 7.3% y/y for the whole fiscal year FY2021, ending in March 2021. The growth for Q1 2021 was powered by favourable base effects, continued economic policy support, and the vaccination drive. Even though the quarter witnessed growth, many of the high-frequency indicators that had picked up momentum in Q4 2020 moderated in the first two months of 2021, such as industrial production. Many indicators only experienced an increase on account of a low base. The worsening COVID-19 situation by the end of March 2021 dented the economic recovery process, although the major impact is likely to be borne by Q1 FY2022.

ISI Emerging Markets Group India Research Economist, Rohini Sanyal, explores the performance of the economy in Q1 2021, and what the high-frequency indicators of the economy are signalling.