Economic activity moves on high road : PHD Chamber

No.PR-341

7 November, 2022

New Delhi

 PHDCCI Economy GPS Index for October 2022

Economic activity moves on high road : PHD Chamber

Demand, supply and financial indicators gained strength in the recent months, says industry body, PHDCCI

Recent months economic activity has gained momentum once again on the back of festive demand and diminishing uncertainties regarding the global economy, said Mr Saket Dalmia, President, PHD Chamber of Commerce and Industry, in a press statement issued here today.

The PHDCCI Economy GPS Index for October 2022 has increased to 145.7 as compared to 145.0 in September 2022, 141.0 in August, 136.1 in July, said Mr Saket Dalmia.

Economic activity is continuous on rise since June 2022 and at the highest level of the current financial year 2022-2023., said Mr. Saket Dalmia.

PHDCCI Economy GPS Index captures the momentum in supply side business activity through growth in GST collections, demand side consumer behaviour through volume growth in passenger vehicle sales and sensitivity of policy reforms and impact of domestic and international economic and business environment through the movement of SENSEX at the base year of 2018-19=100, said the Industry Body.

Passenger vehicles, with compact cars and utility vehicles, decreased from 340649 in September 2022 to 336298 in October 2022, but the y-o-y growth has been marked at a whopping 48.6% in October 2022 as compared to October 2021. October is the fifth month in a row where passenger vehicles’ dispatches have crossed 3,00,000 units, said Mr. Saket Dalmia.

The gross GST (Goods and Services Tax) revenue collected in the month of October 2022 is ₹ 1,51,718 crore of which CGST is ₹ 26,039 crore, SGST is ₹ 33,396 crore, IGST is ₹ 81,778 crore (including ₹ 37,297 crore collected on import of goods) and Cess is ₹ 10,505 crore (including ₹ 825 crore collected on import of goods), which is second highest till date. The revenues for the month of October 2022 are 16.6% higher than the GST revenues in the same month last year, said Mr.Saket Dalmia. 

The sequential growth of SENSEX (average of daily close) has decelerated by about -5.0 per cent in October 2022 as compared to its corresponding value in October 2021, said Mr. Saket Dalmia.

Economic recovery so far (Sequential)

Source: PHD Research Bureau, PHDCCI Economy GPS Index.

The PHDCCI Economy GPS Index for October 2022 has increased to 145.7 as compared to 145.0 in September 2022, said Mr. Saket Dalmia.

 Economic recovery so far (Y-o-Y)

Source: PHD Research Bureau, PHDCCI Economy GPS Index.

PHDCCI Economy GPS Index has been consistently increasing since the last 5 months, said Mr. Saket Dalmia.

Source: PHD Research Bureau, PHDCCI Economy GPS Index.

The pace of economic activity is gaining momentum on the back of the festive season supplemented by the various structural reforms undertaken by the Government during the last 2 years. 

Despite global headwinds, the Indian economy is projected to grow at 6.5% by the World Bank. However, we are still hopeful that economic growth will surpass 7% in the current financial year supported by the resilient demand conditions and improving supply side, said Mr Saket Dalmia.

Going ahead, continued hand holding by the Government is required to mitigate the impact of recent geo-political developments while maintaining a balance between inflation and economic growth, said Mr Saket Dalmia.

PHD Chamber of Commerce and Industry (PHDCCI) Economy GPS Index is a composite index of 3 lead economic and business indicators with base year at 2018-19=100, which measures the broad economic and business activity. The PHDCCI Economy GPS Index, based on the monthly values of three high frequency indicators viz., GST collection (Rs. Crore), Passenger Vehicle Sales (units) and SENSEX (daily average), helps to find the direction of the economy. The three broad indicators represent not only demand and supply in the economy but also revenue growth of the government and movement of financial markets in the country. GST collections indicate the momentum of business activity, passenger vehicle sales is a broad indicator of demand activity in the economy and movement of SENSEX indicates the mood of both domestic and foreign investors.

Table : Movement of Economy GPS over the months

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Warm Regards,

Media Division

PHD Chamber of Commerce and Industry