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India's economic recovery gains momentum in July: PHDCCI
05 Aug '21
2 min read
Pic: Shutterstock
Economic recovery has once again gained momentum in India as the lead economic and business indicators have shown further improvement in July this year. The PHDCCI Economy GPS index has, therefore, increased to 120.2 for July compared to 107.1 for June (for the base year 2018-19, it is 100), said Sanjay Aggarwal, president of the PHD Chamber of Commerce and Industry.
The PHDCCI Economy GPS Index is a composite index of three lead economic and business indicators with base year at 2018-19, which measures the broad economic and business activity.
The sequential growth of passenger vehicles increased by 16 per cent in July 2021 from 2,31,633 units in June 2021 to 2,68,685 units in July 2021. The sequential growth of goods and services tax (GST) collections increased by 25.4 per cent from ₹92,849 crore in June 2021 to ₹1,16,393 crore in July 2021.
The sequential growth of average of daily close of SENSEX also rose by 0.6 per cent from 52399.7 in June 2021 to 52694.3 in July 2021, the industry chamber said in a statement.
On the back of declining new coronavirus cases, continued unlocking in various parts of the country and calibrated economic reforms announced by the government, the economy is recovering at a fast pace from the recent lows of April and May 2021, said Aggarwal.
At this juncture, there is a need to further fuel the drivers of household consumption and private investments to enhance the aggregate demand in the economy as it will have an accelerated effect on expansion of capital investments in the country, he said.
The government should frontload the National Infra Pipeline expenditure as increased spending on infrastructure will offer a multiplier effect to rejuvenate the aggregate demand in the economy, he added.
The PHDCCI Economy GPS Index is a composite index of three lead economic and business indicators with base year at 2018-19, which measures the broad economic and business activity.
The sequential growth of passenger vehicles increased by 16 per cent in July 2021 from 2,31,633 units in June 2021 to 2,68,685 units in July 2021. The sequential growth of goods and services tax (GST) collections increased by 25.4 per cent from ₹92,849 crore in June 2021 to ₹1,16,393 crore in July 2021.
The sequential growth of average of daily close of SENSEX also rose by 0.6 per cent from 52399.7 in June 2021 to 52694.3 in July 2021, the industry chamber said in a statement.
On the back of declining new coronavirus cases, continued unlocking in various parts of the country and calibrated economic reforms announced by the government, the economy is recovering at a fast pace from the recent lows of April and May 2021, said Aggarwal.
At this juncture, there is a need to further fuel the drivers of household consumption and private investments to enhance the aggregate demand in the economy as it will have an accelerated effect on expansion of capital investments in the country, he said.
The government should frontload the National Infra Pipeline expenditure as increased spending on infrastructure will offer a multiplier effect to rejuvenate the aggregate demand in the economy, he added.
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