SBI Ecowrap Report: Good News On Economic Front, GDP Growth Projected At 18.5% In April-June Quarter

Ecowrap stated corporate GVA of 4,069 companies grew by 28.4% in the first quarter. However, this is lower than the fourth-quarter growth of 2020-21.

SBI

New Delhi: Country's Gross Domestic Product (GDP) growth rate will be 18.5% in the first April-June quarter of the current financial year 2021-22. This has been estimated in the SBI Research report Ecowrap. However, this is lower than the Reserve Bank of India's growth forecast of 21.4% in 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% (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 highly cyclical indicators. These indicators are linked to industrial activities, service activities, and the global economy.

The report has estimated that the Gross Value Added (GVA) in the first quarter will be 15%. It said that the first quarter results of the companies show that there has been a significant improvement in corporate GVA, EBITDA (earnings before interest, taxes, depreciation and amortization plus employee cost).

Ecowrap stated corporate GVA of 4,069 companies grew by 28.4% in the first quarter. However, this is lower than the fourth-quarter growth of 2020-21.