India's PHDCCI expects strong GDP growth in coming quarters

“The uptrend in the lead economic and business indicators in the recent months shows that the economic recovery is catching pace and strong economic growth is expected in the coming quarters,” said PHDCCI president Pradeep Multani.

However, he suggested, at this juncture, there is a need to address the high commodity prices and shortages of raw materials to support the consumption and private investments in the country.

GST collections, stock market, UPI transactions, exports, exchange rate, forex reserves, consumer price index inflation, wholesale price index inflation and unemployment rate have registered positive sequential growth in September 2021 compared to August, PHDCCI stated.

Besides, the unemployment scenario improved to 6.9 per cent in September 2021 from 8.3 per cent in the previous month.

Supply-side issues like high input prices and shortage of raw materials are affecting production and reducing the price-cost margins of the businesses, said Multani.

He observed that the drivers of household consumption need to be further strengthened to enhance the aggregate demand as it will have an accelerated effect on the expansion of capital investments.

India’s economy grew by 20.1 per cent in the first quarter of 2021-22, helped by a low base of the year-ago period, according to the official data released in August.

Fibre2Fashion News Desk (DS)