The Indian economic recovery extended in Q3 FY22, however, at a slower pace than anticipated partially due to the waning of the favourable base effect. On the demand side, the real GDP growth was driven by private investment and export, while investment and government spending were disappointing. On the supply side, the growth was led by the services sector, while industrial sector growth was muted. With the ebbing of the third wave, we expect the economic recovery to gain traction in the coming months; however, global headwinds pose risks. We now project real GDP for FY22 at 8.8% YoY compared to 9.3% YoY earlier. Fiscal and monetary policies remain supportive of economic growth revival, though high energy prices amidst the Russia-Ukraine conflict could eat policy space through higher subsidy and inflationary pressures.