SBI Report: The growth rate of the country’s Gross Domestic Product (GDP) will be 18.5 percent in the first April-June quarter of the current financial year 2021-22 (FY22).
The growth rate of the country’s Gross Domestic Product (GDP) will be 18.5 percent in the first April-June quarter of the current financial year 2021-22 (FY22). This has been estimated in the report Ecowrap of SBI Research. However, this is lower than the Reserve Bank of India’s estimate of 21.4 per cent growth for the April-June quarter. The report said that according to our ‘Nowcasting Model’, the GDP growth rate in the first quarter is estimated to be 18.5 percent (with an upward tilt).
The report, however, clarified that the higher growth rate in the first quarter of the financial year is due to the lower base effect of last year. State Bank of India (SBI) has developed Nowcasting model with 41 high cyclical indicators. These indicators are linked to industrial activities, service activities and the global economy.
GVA will be 15 percent
The report has estimated that the Gross Value Added (GVA) will be 15 percent in the first quarter. It said that the first quarter results of the companies show that there has been a significant improvement in corporate GVA, EBIDTA (earnings before interest, tax, depreciation and amortization plus employee cost).
Ecowrap said that the corporate GVA of 4,069 companies grew by 28.4 per cent in the first quarter. However, this is less than the growth of the fourth quarter of 2020-21.
RBI expects 21.4 percent growth in GDP in the first quarter, while the
Reserve Bank of India has expected a growth of 21.4 percent in GDP again this month for the quarter under review. Official data on economic activity for the first quarter from the Central Statistics Office is expected by the end of this month.
