Real Estate Services to Drive Growth Recovery
<span style="font-weight: 400;">As per the National Statistics Office, the estimated H2FY21 recovery in overall growth will likely be driven by services sector contracting around 1.1 percent in H2FY21 as against 15.9 percent in H1, led by real estate services among others.</span> <span style="fon
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Jan 11, 2021 4:18 AM
As per the National Statistics Office, the estimated H2FY21 recovery in overall growth will likely be driven by services sector contracting around 1.1 percent in H2FY21 as against 15.9 percent in H1, led by real estate services among others. The National Statistics Office (NSO) on January 7 released its first Advance Estimates (AE) of GDP for the year 2020-21. The real GDP at 2011-12 prices in 2020-21 has been estimated to contract 7.7 percent and nominal GDP at current prices by 4.2 per cent. As per quarterly estimates of NSO, real GDP contracted by 15.7 percent in the first half of 2020-21. Real GDP on a quarter-on-quarter basis grew at 21 percent from Q1FY21 to Q2FY21. The AE of 2020-21 reflects a continued resurgence in economic activity in Q3 and Q4 – which would enable the Indian economy to end the year with a contraction of 7.7 percent. The continuous quarter-on-quarter growth endorses the strength of economic fundamentals of the country to sustain a post-lockdown V-shaped recovery. On the demand side, real GDP in 2020-21 has been supported by an estimated increase in government consumption expenditure by 5.8 percent. On the supply side, agriculture is estimated to register positive growth of 3.4 percent against 4.0 percent as per the PE of 2019-20. In the manufacturing sector, the electricity sector is estimated to register a growth of 2.7 percent. The pandemic and associated public health measures have adversely affected the contact-sensitive services sector where trade, hotels, transport and communication are estimated to contract by 21.4 percent in FY2020-21. The estimated H2FY21 growth recovery will likely be driven by services. The services de-growth will likely moderate sharply to -1.1 percent in H2FY21 as against -15.9 percent in H1FY21, led by financial, insurance, real estate services. Public spending will be another major growth contributor in the remainder of the year,” an analysis of NSO data by Emkay India Equity Research has said.
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