India's GDP growth in recovery mode

GVA growth recovered to 1% YoY from -7.3% in Q2 FY21 and -22.4% in Q1 FY21 with broad-based recovery seen across sectors.

Agriculture sector registered a strong growth of 3.9% YoY in Q3 FY21 due to robust Rabi sowing and Kharif output as against 3% growth in Q2 FY21 and 3.4% growth in Q3 FY20.

GVA services improved in Q3 FY21 and contracted by just 1 per cent as compared to a contraction of 11 per cent and 21 per cent in Q2 FY21 and Q1 FY21, respectively.

The Q3 GDP growth improved to 0.4% as compared to -7.3% growth in Q2, led by a recovery in net investments, private as well as government consumption.  

 A shallower contraction was seen in private consumption that improved to -2.4% YoY in Q3 FY21 after two quarters of double-digit contraction.

Government consumption expenditure recovered to -1.1% in Q3 from -24.0% in Q2 FY21.

Gross Fixed Capital Formation increased by 2.6% YoY in Q3 FY21 after three consecutive quarters of contraction amidst demand-side recovery, fiscal and monetary policy support.Shivani Sharma, Pragati Srivastava