As the effects of low base dissipated, India’s real GDP growth moderated to 8.4% y/y in Q3 2021, from 20.1% y/y in Q2. Despite the moderation, the GDP at constant prices increased in value as compared to the previous quarter. Economic recovery continued across most sectors, with manufacturing and services gaining momentum. However, the emergence of the new strain of the virus, and global supply chain disruptions pose a threat to India’s recovery process.
ISI Emerging Markets Group India Research Economist, Rohini Sanyal, explores the performance of the economy in Q3 2021, and what the high-frequency indicators of the economy are signalling at present.