However, the GDP growth in the July-September period was slower than the 20.1 per cent expansion in the previous quarter.

"As per SBI Nowcasting Model, the forecasted GDP growth for Q3 FY22 would be 5.8 per cent, with a downward bias. The full year (FY22) GDP growth is now revised downwards to 8.8 per cent from our earlier estimate of 9.3 per cent," the SBI report said last week.

The Nowcasting Model is based on 41 high frequency indicators associated with industry activity, service activity and global economy.

The real GDP will be around ₹2.35 lakh crore more, i.e., 1.6 per cent higher, than the FY20 real GDP of ₹145.69 lakh crore, it said.

The recovery in domestic economic activity is yet to be broad-based as private consumption remained below pre-pandemic levels, it said.

The high frequency indicators suggest some weakening of demand in Q3 also continuing to January 2022, reflecting the drag on contact-intensive services, a news agency reported.

Rural demand indicators, say two-wheeler and tractor sales, continued to decline since August 2021.

The report suggested the government to offer livelihood loans, up to ₹50,000, to the rural poor. Given the significant success of vaccination in the third wave in rural pockets, the livelihood loans can be the silver bullet catapulting the broader economy to unprecedented highs, it added.

The country’s National Statistical Office (NSO) will declare the GDP estimates for Q3 FY22 on February 28.

Fibre2Fashion News Desk (DS)