Economic activity has remained intact and the GDP is poised to enter a double digit growth trajectory in FY22, said industry body PHD Chamber.
The industry body cited that broad-based policy measures undertaken by the Centre during the last 11 months enhanced the economic activity at significantly higher levels.
As per the PHDCI Economy GPS Index, February month economic activity based on the composite index of three broad economic indicators including GST collections, passenger vehicle sales and Sensex hit an all-time high of 122 at a base year of 2018-19.
The index was at 103 in February 2020.
“The PHDCCI Economy GPS Index during the period April-February of FY2020-21 stands at 92.4 as compared with April-February FY20 at 99.5.”
“The growing trend of PHDCCI Economy GPS Index indicate a stronger outlook of Indian Economy in the FY2021-22.”
According to the industry body, sharp recovery in GDP growth seen in Q3FY21 at 0.4 per cent as compared with (-)7.3 per cent in Q2 and (-) 24.4 per cent in Q1 2020-21 (as per revised NSO estimates) is a result of impactful reforms undertaken by the government since March 2020.
Further, as a result of recovering investor sentiment, the economy has potential to accelerate at 11 per cent growth trajectory in the next financial year 2021-22 as envisioned by the FY 2020-21 economic survey said Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry.