Economic activity remains robust, PHDCCI Economy GPS Index grows 13.7% in June 2023 

PR No – 432

7th July, 2023

New Delhi

Economic activity remains robust, PHDCCI Economy GPS Index grows 13.7% in June 2023 

The lead economic indicators and policy environment remains robust ; the PHDCCI Economy GPS Index for June 2023 went up at 151.9 from 133.5 in June 2022 with an increases of 13.7% on the Y-O-Y basis, said Mr. Saket Dalmia, President, PHD Chamber of Commerce and Industry in a press statement issued here today.

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.

Demand trajectory in the economy remains intact as passenger vehicles, with compact cars and utility vehicles grew around 6% Y-o-Y at 313360  in June 2023 from 294521 in June 2022. Supply side indicator, the gross GST revenue collections grew 12% Y-o-Y at Rs. 1, 61,497 crore in June 2023 as compared with  Rs. 1,44,616 crore in June 2022. However, the sequential growth of SENSEX (average of daily close) has shown an increase by 3.3% percent in June 2023 as compared to its corresponding value in May 2023, said Mr. Saket Dalmia

Economic recovery so far (Y-o-Y)

Source: PHD Research Bureau, PHD Chamber of commerce and Industry

Economic recovery so far (Sequential)

Source: PHD Research Bureau, PHD Chamber of commerce and Industry

PHDCCI Economy GPS Index has consistently remained above 140 levels since August 2022 which shows a positive momentum for the economic activity. The pace of economic activity showed momentum on the back of strong demand side, supply side and investments, supported by the various structural reforms undertaken by the Government during the last 3 years.

Going ahead, continued hand holding by the Government would help the economy to move ahead with a great zeal and enthusiasm, said Mr Saket Dalmia.

Source: PHD Research Bureau, PHDCCI Economy GPS Index.

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

Source: PHD Research Bureau, PHD Chamber of commerce and Industry