Economic recovery progressing towards Q4 level of FY20

The continuous improvement in the key economic and business indicators signals that the worst is behind us and expectations of positive GDP growth at 0.1 per cent to 2 per cent in Q3 and 2 per cent to 4 per cent in Q4 FY 2020-21 are becoming strong with a higher growth trajectory in FY 2021-22 at 7.7 per cent, according to PHDCCI EBM Index (Economic and Business Momentum Index).

The series of stimulus announcements by the Government in last 9 months under the AatmaNirbhar Bharat Abhiyaan 1.0, 2.0 and 3.0 along with the calibrated measures undertaken by the RBI have pulled the economy from the lows of Q1 FY 2020-21 (-) 23.9 per cent in Q1 2020-21 to (-) 7.5 per cent in Q2 FY 2020-21, said Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry in a press statement issued on Tuesday.

The overall growth for the FY 2020-21 is expected to contract by (-) 7.9 per cent, said Aggarwal.

The growth trend of PHDCCI EMB Index suggests that the economy has the potential to rejuvenate at more than 7.7 per cent growth trajectory in the next financial year 2021-22.