Aggarwal calls for effective policy measures
On the basis of recent movement of PHDCCI Economic & Business Momentum (EBM) Index, the PHD Chamber projects more than 1% growth rate of GDP in Q4 FY 2020-21 and overall GDP growth of FY 2020-21 at -7.9% (minus).
Going ahead, to attain a higher growth trajectory, effective policy measures are needed once again to support demand creation and to have a multiplier effect on enhanced production possibilities, expansion of employment in factories, expansion of capital investments and overall virtuous circle of growth and development of Indian economy, said PHDCCI President Sanjay Aggarwal.
A substantial stimulus to create effective strides for futuristic economic growth trajectory would be crucial in this extremely difficult time, said Sanjay Aggarwal.
There is a need to lower interest rates for consumers and businesses, lesser compliances for MSMEs vis-à-vis ease of doing business at the ground level and a lower tax regime to increase the personal disposable income of the people, he said
At this juncture, the Government has to step up with proactive and calibrated measures to mitigate the daunting impact of Coronavirus 2.0 on people, industry, trade and economy, as it did during the last year in 2020, said Sanjay Aggarwal.
The EBM Index of 25 lead economic and business indicators has registered an increase in March 2021 to the level of 99.9 as compared to 99.5 in February 2021 and 99.7 in January 2020, at the base of 2018-19 = 100.
Lead economic and business indicators such as cement, steel, consumer durables, GST collections, external commercial borrowings and FDI equity inflows have shown a marvelous improvement in March 2021, said Sanjay Aggarwal.
The PHDCCI EBM Index has shown steady recovery from the lows of 78.3 in April 2020 to 85.7 in May 2020, 91.6 in June 2020, 95.5 in July 2020, 95.9 in August 2020, 96.5 in September 2020, 96.8 in October 2020, 98.4 in November 2020, 99.2 in December 2020, 99.7 in January 2021, 99.5 in February 2021 and 99.9 in March 2021, with a base of 2018-19=100. The EBM index during the period April –March of FY 2020-21 stands at 94.7 as compared with 99 in April –March FY 2019-2020, said Sanjay Aggarwal in a release on 21 May 2021.
PHDCCI EBM Index is a composite index of 25 lead economic and business indicators with base year at 2018-19=100, which considers the demand and supply indicators to present a broad perspective of the economy. The 25 indicators include the Index of Industrial Production (IIP) Consumer durable goods, IIP Consumer non-durable goods, IIP Capital Goods, IIP Intermediate Goods, Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilisers, Steel, Cement, Electricity, Consumption of Petroleum products, Export Merchandise, Export Services, India Freight Traffic, Credit to Agriculture, Credit to Industry, Credit to service sector, Personal Loans, GST Collections, SENSEX, FDI Equity Inflows, External commercial borrowings and Unemployment. #production #manufacturing #economy #MSMEs #investment #banking /fiinews.com
