Siddhartha Sanyal, Chief Economist and Head of Research, Bandhan Bank
The GDP growth of 5.4% in Q3 FY22 was lower than our estimated 5.7%. Strong government spending was not adequate to compensate for softer prints in case of manufacturing, construction and agriculture. During Q4 FY22, the economy faces headwinds like rising commodity prices, nagging patches of weather aberrations during key winter crop months, Covid third wave, and most recently major geopolitical uncertainty. Against this backdrop, the challenge for policymakers intensifies manifold to strike the right balance between supporting growth recovery and tackling inflationary concerns while ensuring financial market stability.