Sharp recovery in GDP growth inspiring, looking forward to a double digit growth in FY 2021-22: PHD Chamber

No. PR- 238

February 26, 2021

New Delhi

 

Sharp recovery in GDP growth inspiring, looking forward to a double digit growth in FY 2021-22: PHD Chamber

 

Mr Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, has appreciated the sharp recovery in GDP growth in Q3 FY 2020-21 at 0.4% as compared with (-)7.3% in Q2 and (-) 24.4% in Q1 2020-21.  

 

Meaningful reforms undertaken by the Government since March 2020 are really appreciable and becoming fruitful. Effect of the reforms undertaken by the Government has now become visible with a strong rebound in the economic and business indicators, said Mr Sanjay Aggarwal in a press statement issued here today.  

 

GDP growth rate at 0.4% for Q3 FY 2020-21 is very much in line with our projections in the PHDCCI Economic and Business Momentum (EBM) Index released on February 22, 2021, in which we had estimated that the GDP growth will be at around 0.1% to 1% in Q3 FY 2020-21, said Mr Sanjay Aggarwal.

 

The Q3 FY 2020-21 GDP growth rate stands at 0.4%, of which growth rate of Agriculture, forestry & fishing is stands at 3.9%, Mining & quarrying at (-)5.9%, Manufacturing at 1.6%, Electricity, gas, water supply & other utility services at 7.3%, Construction at 6.2%, Trade, hotels, transport, communication & services related to broadcasting at (-)7.7%, Financial, real estate & professional services at 6.6% and Public administration, defence & other services at (-)1.5%.

 

Going ahead, the Government’s focus on demand rejuvenating measures in Union budget 2021-22, including large scale infrastructure investments, expansion of National Infrastructure Pipeline, 26% increase in budget support for the capital expenditure from revised estimate of Rs 4,39,163 crore in 2020-21 to budget estimate of Rs 5,542,36 crore in 2021-22, setting up a Development Finance Institution (DFI), among others will have a multiplier effect on the economic growth trajectory of the country, said Mr Sanjay Aggarwal.

 

The focus of the budget to strengthen the vision of Nation First, doubling farmers' income, strong infrastructure, enhancing women's empowerment, promoting healthy India, good governance, education for all, inclusive development of all, would go a long way to build a New India and have potential to push the GDP growth towards a higher trajectory to become a US$ 5 trillion economy by 2025-26, said Mr. Sanjay Aggarwal.

  

Going forward, we expect significant growth trajectory of more than 11% in next financial year 2021-22, said Mr Sanjay Aggarwal.

 

At this juncture, to continue the recovery momentum of economic and business activity, immediate policy attention is required towards credit access to industry and services sectors, said Mr Sanjay Aggarwal.

 

Credit disbursement should be at priority by the banking sector, he said.

 

The focus should be on ensuring provision of hassle free disbursements of loans vis-à-vis enhanced liquidity for MSMEs, especially in rural sectors, said Mr Sanjay Aggarwal.

 

Going ahead, demand creation will have a multiplier effect on enhanced production possibilities, expansion of employment in factories, expansion of capital investments and overall virtuous circle of growth and development of Indian economy, said Mr Sanjay Aggarwal.

 

The increased spending on infrastructure will give a multiplier effect to rejuvenate the aggregate demand in the economy and to mitigate the daunting impact of COVID-19 on the economy, said Mr Sanjay Aggarwal.

 

Also, there is a need to lower compliances for MSMEs vis-à-vis ease of doing business at the ground level and a lower tax regime to increase the personal disposable income of the people, said Mr Sanjay Aggarwal.

 

Ends

Media Division

PHD Chamber of Commerce and Industry