Aggarwal sees fast pace economic recovery from April-May 2021 low
The Government should front-load the National Infra Pipeline (NIP) expenditure as increased spending on infrastructure will give a multiplier effect to rejuvenate the aggregate demand in the economy, said PHD Chamber of Commerce and Industry (PHDCCI) President Sanjay Aggarwal. He noted that the economic recovery has gained momentum from July 2021.
Undoubtedly, robust growth of infrastructure is the key ingredient to realize the vision of Aatmanirbhar Bharat, he added.
But 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, said Aggarwal.
The July 2021 economic recovery was based on PHDCCI Economy GPS index which has increased to 120.2 for the month from 107.1 for June 2021 (Base year 2018-19 = 100).
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, according to Aggarwal.
More and more direct benefit transfers needs to be considered for the urban and rural poor under the various welfare schemes in addition to the free distribution of dry rations till Diwali. This year, Diwali will be celebrated on November 4, a joyous festival which almost everyone in India looks forward to.
Vaccination of population should be continued with a more faster pace, let’s target to vaccinate at least half of the population by end September 2021, said Aggarwal.
Sequential growth of passenger vehicles was 268,685 units in July 2021, up 16% from 231,633 units in June 2021.
The sequential growth of GST collections was Rs.116,393 crore in July 2021, an increase of 25.4% from Rs.92,849 crore in June 2021.
The sequential growth of average of daily close of SENSEX also rose by 0.6% to 52694.3 in July 2021 from 52399.7 in June 2021.
The PHDCCI Economy GPS Index during the period April–July of FY 2021-22 stands at 110.8 as compared to 62.6 for April–July FY 2020-2021, said Aggarwal.
PHDCCI Economy GPS Index at 120.2 for July 2021 is higher by 34.6 points from the Economy GPS Index for July 2020 at 85.6, he pointed out.
The PHDCCI Economy GPS Index is a composite index of 3 lead economic and business indicators with base year at 2018-19=100, which measures the broad economic and business activity. The three broad indicators are representing not only demand and supply in the economy but also revenue growth of the government and movement of financial markets in the country. GST collections indicate the momentum of business activity, passenger vehicle sales is broad indicator of demand activity in the economy and movement of SENSEX indicate mood of both domestic and foreign investors. #economy #investment #projects #infrastructure /fiinews.com
