No. PR- 045
May 31, 2021
GDP growth rate of 1.6% in Q4 FY2021 encouraging, calibrated measures needed to attain higher growth trajectory in FY 2022: PHD Chamber
Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, has appreciated the recovery in GDP growth in Q4 FY 2020-21 at 1.6% as compared with 0.5% in Q3, (-)7.4% in Q2 and (-) 24.4% in Q1 2020-21.
The overall GDP growth rate of FY 2021 at (-) 7.3% is very much in line with expectations of PHD Chamber, said Sanjay Aggarwal
Meaningful and proactive reforms undertaken by the Government in last many quarters has pulled the economy from the lows of Q1 FY 2021 and resulted in the sharp rebound in the GDP in subsequent quarters of FY 2021, said Sanjay Aggarwal.
The Q4 FY 2020-21 GDP growth rate stands at 1.6%, of which growth rate of Agriculture, forestry & fishing is stands at 3.1%, Mining & quarrying at (-)5.7%, Manufacturing at 6.9%, Electricity, gas, water supply & other utility services at 9.1%, Construction at 14.5%, Trade, hotels, transport, communication & services related to broadcasting at (-)2.3%, Financial, real estate & professional services at 5.4% and Public administration, defence & other services at 2.3%.
The overall FY 2020-21 GDP growth rate stands at (-)7.3%, of which growth rate of Agriculture, forestry & fishing is stands at 3.6%, Mining & quarrying at (-)8.5%, Manufacturing at (-)7.2%, Electricity, gas, water supply & other utility services at 1.9%, Construction at (-)8.6%, Trade, hotels, transport, communication & services related to broadcasting at (-)18.2%, Financial, real estate & professional services at (-)1.5% and Public administration, defence & other services at (-)4.6%.
We highly appreciate the high growth rate of core infra at the level of 56.1% in April 2021 as compared to (-)37.9% in April 2020 and 5.2% in April 2019. The indicates that economy has much potential to rejuvenate from lows caused by pandemic covid-19, said Sanjay Aggarwal.
However, the rapid re-spread of corona cases in 2nd wave of COVID and resultant partial/complete lockdown in many parts of the country have posed severe challenges to double digit economic growth in FY 2022, said Sanjay Aggarwal.
At this juncture, the Government has to step up with proactive and calibrated measures to mitigate the daunting impact of Coronavirus on economy, trade and industry, said Sanjay Aggarwal.
Effective policy measures are needed once again to support demand creation and to maintain employment in factories, said Aggarwal.
There is a need for speedy vaccination of the people along with enhanced production possibilities of the vaccine at domestic level and import from other countries to diminish the pandemic impact on people and economy.
When 75% of the population of country will receive vaccination of both doses, only then a safe harbour could be expected for the industry, especially MSMEs.
A substantial stimulus to create effective strides for futuristic economic growth trajectory and to diminish the daunting impact of second wave of the pandemic coronavirus on trade and industry would be crucial to support the economic momentum in this extremely difficult time, said Sanjay Aggarwal.
PHD Chamber of Commerce and Industry