homevideos Newseconomy NewsFY21 GDP shrinks 7.3%: Revival of construction sector positive, says RBL Bank’s Rajni Thakur
FY21 GDP shrinks 7.3%: Revival of construction sector positive, says RBL Bank’s Rajni Thakur
The revival of the construction sector is positive, Rajni Thakur, an economist at RBL Bank, said after GDP data was released by the government on May 31.
The revival of the construction sector is positive, Rajni Thakur, an economist at RBL Bank, said after GDP data was released by the government on May 31.
Indian economy contracted 7.3 percent in FY21 against a 4 percent expansion in the preceding FY20, official data showed on May 31. The slump was not as bad as the Street had predicted thanks to a 1.6 percent rise in March quarter GDP.
A CNBC-TV18 poll had also estimated the GDP to shrink by 7.5 percent.
“Both gross domestic product (GDP) and gross value added (GVA) number were around 1 percentage point higher than what we expected, government consumption was on track, and government lead investment was on track,” Thakur told CNBC-TV18 in an interview.
Construction sector revival is a big positive and there is some pent up in agriculture also, which would show up in the next quarter’s numbers. Private consumption turned positive after three quarters. Therefore, there is more upside to our growth expectations after these numbers, she added.
“If the subsequent quarter stays on track, we are looking at 9-11.5 percent expectation for FY22. It’s a wide range, not desirable for us as an economist as well but it could pan out either way given the uncertainties on the medical side,” she said.
For the entire interview, watch the video
(Edited by : Kanishka Sarkar)
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