No. PR – 154
November 30th, 2021
GDP growth rate at 8.4% in Q2 FY 2022 encouraging, looking forward to a double digit growth in FY 2021-22: PHD Chamber
Mr Pradeep Multani, President, PHD Chamber of Commerce and Industry, has appreciated the 8.4% GDP growth in Q2 FY 2021-22 as compared with (-)7.4% in Q2 FY 2020-21.
On the back of meaningful and proactive reforms undertaken by the Government, calibrated measures by RBI, rapid vaccination drive in the country, improved consumer and business sentiments and low base effect, the economy has recovered from the severe contraction of FY 2020-21, said Mr Pradeep Multani.
The Q2 FY 2021-22 GDP growth rate stands at 8.4%, of which growth rate of Agriculture, forestry & fishing stands at 4.5%, Mining & quarrying at 15.4%, Manufacturing at 5.5%, Electricity, gas, water supply & other utility services at 8.9%, Construction at 7.5%, Trade, hotels, transport, communication & services related to broadcasting at 8.2%, Financial, real estate & professional services at 7.8% and Public administration, defence & other services at 17.4%.
Gross fixed capital formation (GFCF), which reflects the capital expenditure in the country has accelerated by 11% to Rs 11.4 lakh crore in Q2 FY 2021-22 as compared to Rs 10.3 lakh crore in Q2 FY 2020-21. Private final consumption expenditure (PFCE) has also increased by 8.6% to Rs 19.5 lakh crore in Q2 FY 2021-22 from Rs 17.9 lakh crore in Q2 FY 2020-21, while Government final consumption expenditure (GFCE) has increased by 8.7% to Rs 3.6 lakh crore in Q2 FY 2021-22 from Rs 3.3 lakh crore in Q2 FY 2020-21, said Mr Pradeep Multani.
GDP growth rate at 8.4% for Q2 FY 2021-22 is very much in line with our projections given in the PHDCCI Economic and Business Momentum (EBM) Index released on November 18, 2021, in which we had estimated that the GDP growth will be in the range of 8-10% for Q2 FY 2021-22, said Mr Pradeep Multani.
On the basis of recent movement of PHDCCI Economic & Business Momentum (EBM) Index, PHD Chamber projects the overall GDP growth in double digits at 10.25% for FY 2021-22, said Mr Pradeep Multani.
At this juncture, there is a need to address the high commodity prices and shortages of raw material to support the consumption and private investments in the country, said Mr Pradeep Multani.
The drivers of household consumption need to be further strengthened to enhance the aggregate demand as it will have an accelerated effect on expansion of capital investments, said Mr Pradeep Multani.
More and more direct benefit transfers needs to be enhanced for the urban and rural poor under the various welfare schemes of the Government to strengthen and sustain the recovery in the economic growth, said Mr Pradeep Multani.
PHD Chamber of Commerce and Industry
No. PR – 154