NEU-DELHI: Given the increasing economic activity and the upturn in investor sentiment, GDP growth is likely to reach double-digit growth rates and grow by more than 11 percent in the next financial year, according to a report by the PHD Chamber of Commerce and Industry.
A strong rebound in GDP growth in the third quarter of fiscal 2020-21 is 0.4 percent versus a decline of 7.3 percent in the second quarter and 24.4 percent in the first quarter of 2020-21 (per revised NSO estimates) the result of effective reforms by the government since March 2020, said Sanjay Aggarwal, president of the PHD Chamber of Commerce and Industry.
“As a result of the recovery in investor sentiment, the economy has the potential to accelerate 11 percent in the next fiscal year 2021-22, as forecast in the Indian government’s fiscal year 2020-21 economic survey,” he said.
Aggarwal noted that the range of broad policy measures the government has taken over the past eleven months have improved economic activity at significantly higher levels
The PHDCI Economy GPS Index was 103 in February 2020, an improvement of 19 points in February 2021 compared to February 2020.
The trend in the PHDCCI Economy GPS Index shows that the Indian economy is moving in the direction of improved dynamics compared to its level in February 2020, according to the president of the industry association.
The PHDCCI Economy GPS Index is 92.4 in the April-February of the 2020-21 financial year, compared to 99.5 in the April-February of the 2019-2020 financial year. The growing trend of the PHDCCI Economy GPS Index indicates a stronger outlook for the Indian economy in fiscal 2021-22, he said.
