<p>The GDP data releasing today may show the Indian economy returning on the growth path in the October-December period, after two successive quarters of contraction.</p>.<p>Most of the high-frequency data such as industrial production, PMI, GST collection, rail freight loading, auto sales and non-oil, non-gold imports have moved into positive territory in the quarter under review, giving hopes of the economy turning the corner.</p>.<p>The RBI has projected growth of 0.1% during the third quarter, while the State Bank of India in its projections has said the acceleration will be to the tune of 0.3% in the December quarter.</p>.<p>Various rating agencies such as ICRA, Ind-Ra have estimated the growth to be between 0.3% and 0.7%. The DBS bank however says the economy will expand 1.3% in the Dec quarter.</p>.<p>“We peg 3QFY21 GVA (gross value added) estimate at 1.6% year-on-year. Full-year real GDP growth in FY21 is expected to register -6.8%, before cyclical tailwinds and base effects lift full-year FY22 to 10.5%, assuming a well-contained caseload and on-track vaccination programme,” the DBS Bank said.</p>.<p>Farm output will continue to add to the growth in the December quarter, joined by firmer manufacturing output, benefitting from festive demand, resumption in activities and restocking of supplies.</p>.<p>“Amongst services, financial services and public administration are likely to fare better than contact-intensive facilities like travel, airlines, and tourism.”</p>.<p>The industrial remained positive for two of the three months under review, both, manufacturing and services PMI remained above 50, which separates growth from contraction.</p>.<p>Better industrial output and manufacturing translated into handsome goods and service collection since October period and it remained above Rs 1 lakh crore in all three months.</p>.<p>The agriculture sector, which remained in the positive territory throughout the pandemic, is expected to do better in the coming quarters too.</p>.<p>India’s GDP contracted by nearly 24% in the April-June quarter and recovered to log a decline of 7.5% in the July-September quarter forcing India to enter into a recession.</p>
<p>The GDP data releasing today may show the Indian economy returning on the growth path in the October-December period, after two successive quarters of contraction.</p>.<p>Most of the high-frequency data such as industrial production, PMI, GST collection, rail freight loading, auto sales and non-oil, non-gold imports have moved into positive territory in the quarter under review, giving hopes of the economy turning the corner.</p>.<p>The RBI has projected growth of 0.1% during the third quarter, while the State Bank of India in its projections has said the acceleration will be to the tune of 0.3% in the December quarter.</p>.<p>Various rating agencies such as ICRA, Ind-Ra have estimated the growth to be between 0.3% and 0.7%. The DBS bank however says the economy will expand 1.3% in the Dec quarter.</p>.<p>“We peg 3QFY21 GVA (gross value added) estimate at 1.6% year-on-year. Full-year real GDP growth in FY21 is expected to register -6.8%, before cyclical tailwinds and base effects lift full-year FY22 to 10.5%, assuming a well-contained caseload and on-track vaccination programme,” the DBS Bank said.</p>.<p>Farm output will continue to add to the growth in the December quarter, joined by firmer manufacturing output, benefitting from festive demand, resumption in activities and restocking of supplies.</p>.<p>“Amongst services, financial services and public administration are likely to fare better than contact-intensive facilities like travel, airlines, and tourism.”</p>.<p>The industrial remained positive for two of the three months under review, both, manufacturing and services PMI remained above 50, which separates growth from contraction.</p>.<p>Better industrial output and manufacturing translated into handsome goods and service collection since October period and it remained above Rs 1 lakh crore in all three months.</p>.<p>The agriculture sector, which remained in the positive territory throughout the pandemic, is expected to do better in the coming quarters too.</p>.<p>India’s GDP contracted by nearly 24% in the April-June quarter and recovered to log a decline of 7.5% in the July-September quarter forcing India to enter into a recession.</p>
