Indian economy on verge of slow recovery as worst is over: PHDCCI


Team Udayavani, Oct 25, 2020, 12:21 PM IST

New Delhi: Industry body PHDCCI expects India’s GDP to contract by 7.9 per cent in the current financial year and grow by 7.7 per cent in 2021-22, assessing that the worst is over and the economy is on the verge of a slow recovery.

The PHDCCI drew the conclusions based on its analysis of 25 high-frequency economic indicators which point out that there has been a pickup in business normalization.

However, the unemployment rate still remains a worry as it worsened to 8.3 per cent in August from 7.4 per cent in July, it said in a report.

“Going ahead, India should focus on moving away from imports from China, divert trade towards friendly economies, build domestic capacities and significantly scale-up indigenous production with a thrust to become self-reliant,” PHD Chamber of Commerce and Industry (PHDCCI) said.

It said also that efforts should be made to diversify the portfolio of export products in terms of more countries and also in terms of more products, where India has a core competence.

PHDCCI President Sanjay Aggarwal said on the back of various reforms undertaken by the government during the last six months, economic recovery has become visible in the high-frequency indicators.

“At this juncture, on the basis of PHDCCI Economic and Business Momentum (EBM) Index, we estimate that the GDP growth will be at around (-) 7.9 per cent for the current financial year 2020-21 and 7.7 per cent for the next financial year 2021-22,” Aggarwal told PTI.

The chamber suggests that the government should prioritize demand creation measures to attain a positive growth trajectory in the third and fourth quarters of the current financial year ending March 2021.

“Demand creation will have a significant effect on the enhanced production sentiments of producers, increased investments and employment creation. Investments in the infrastructure will refuel the growth trajectory with increased demand for commodities such as steel, cement and power which in turn will rejuvenate private investments and create new employment opportunities in the country,”said Aggarwal.

The chamber observed that while several sectors of the economy will continue to have the after-effects of the pandemic, recent economic data shows that the worst is over and India is on the verge of a slow recovery.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Koppal: Woman beats covid after 158-day hospital treatment

RBI maintains status quo for 9th consecutive time; retains repo rate at 4 pc

Omicron is a product of vaccine apartheid

RBI maintains status quo for 9th consecutive time; retains repo rate at 4 pc

Farmers’ stir: SKM committee likely to meet Shah, Tomar

Cattle theft increased after BJP came to power: MLA Khader

Australia joins US in diplomatic boycott of 2022 Beijing Winter Olympics


Related Articles More

Proud moment for Konkani community: Damodar Mauzo on winning Jnanpith award

Farmers’ stir: SKM committee likely to meet Shah, Tomar

India records 8,439 new COVID-19 cases, 195 fatalities

Trolled over a photo, Shashi Tharoor hits back at trolls, calls them ‘organised brigade of Bhakts’

India among most unequal nations; top 1% of population holds 22% of national income: report

MUST WATCH

Man Accidentally Burns Down House Worth 13 Crore Rs While Trying to Get Rid of Snakes

NEWS BULLETIN 07-12-2021

FIRST DOCTORATE FROM SIDDHI COMMUNITY

Cobra’s Head Gets Stuck in Beer Can

Karnataka law students on warpath against KSLU


Latest Additions

Koppal: Woman beats covid after 158-day hospital treatment

Mangaluru: Bike rider killed after crashing into electric pole

RBI maintains status quo for 9th consecutive time; retains repo rate at 4 pc

Proud moment for Konkani community: Damodar Mauzo on winning Jnanpith award

World’s largest cannabis brownie, weighing 385 kg, is on sale

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.