IIP growth in double digits inspiring: speedy vaccination of people will diminish pandemic impact on economy and businesses: PHD Chamber

No. PR- 030

May 12, 2021

New Delhi

 

IIP growth in double digits inspiring: speedy vaccination of people will diminish pandemic impact on economy and businesses: PHD Chamber

 

Double digit growth at 22.4% in the Index of Industrial Production (IIP) for the month of March 2021 is inspiring and indicate that economic recovery in the month of March 2021 was well in the right direction, said Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, in a press statement issued here today.

 

The growth of consumer durables at around 55% followed by the growth of capital goods at around 42%, Infrastructure/ Construction goods at around 31%, Consumer non-durables at around 28%, manufacturing at around 26% in March 2021, indicate that the recovery was broad based on the back of various reforms undertaken by the Government during the last one year, said Sanjay Aggarwal.

 

However, the emergence of second wave of Coronavirus in the month of April 2021 has posed serious challenges to the economic recovery in the coming months  and to attain an anticipated double digit growth trajectory in 2021-22, said Sanjay Aggarwal.

 

Prolonged State wise lockdowns and curfews in many parts of the country will have impact on recovery process with contraction in demand and subdued investment activity, said Sanjay Aggarwal

 

At this juncture, speedy vaccination of all the people above the age of 18 years along with enhanced production possibilities of the vaccine  would diminish the pandemic impact  on the growth of economy and businesses, said Sanjay Aggarwal.

 

We are happy to note that CPI inflation has also come down to 4.29% in the month of April 2021 which is now well within the RBI's target band of 2-6 per cent. At this juncture, we expect that RBI should take more liberal policy measures to enhance liquidity in the economy and easier availability of credit to industry, said Sanjay Aggarwal.

 

Ends

 

Media Division

 

PHD Chamber of Commerce and Industry