Economic activity performs robust, PHDCCI Economy GPS Index grows 14% (Y-o-Y) in July 2023 

PR No – 443

7th August, 2023

New Delhi

Economic activity performs robust, PHDCCI Economy GPS Index grows 14% (Y-o-Y) in July 2023 

As economic activity including demand, supply and policy environment performs robust; the PHDCCI Economy GPS Index for July 2023 went up at 155.3 in July 2023 from 136.1 in July 2022 with an increase of 14% on the Y-o-Y basis, 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.

Demand trajectory in the economy remains intact as passenger vehicles, with compact cars and utility vehicles grew around 7.9% Y-o-Y at 317356  in July 2023 from 293865 in July 2022. Supply side indicator, the gross GST revenue collections grew 11% Y-o-Y at Rs. 1, 65,105 crore in July 2023 as compared with  Rs. 1,48,995 crore in July 2022. The sequential growth of SENSEX (average of daily close) has shown an increase by 2.7% percent in July 2023 as compared to its corresponding value in June 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

The high growth of Economy GPS indicate that economy is showing a great strength and moving ahead in  the right direction, said Mr. Dalmia

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 investment 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 Index over the months

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

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Warm Regards,

Media Division

PHD Chamber of Commerce and Industry