GDP growth number: A pleasant surprise, but will it help in FY22?

With the second wave leading to a close down of services, in particular, progress will remain retarded

The GDP growth number for FY21 was going to be a point of interest for two reasons, even though it refers to the previous year and is not fresh news, as we are all talking of how Q1FY22 is likely to be affected by the second wave.

The first is that it settles the base on which any projection for FY22 is to be done. The second advance estimate spoke of a decline of eight per cent and any significant variation would get reflected in the forecast for FY22, which is the case now with degrowth of 7.3 per cent.