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Expressing optimism over India’s economic growth, the PHD Chamber of Commerce and Industry (PHDCCI) has said that the country’s economic recovery gained momentum in recent months on the back of rapid progress in vaccinations, festive season and consequent improvement in consumer and industry sentiments. The PHDCCI Economy GPS Index for October 2021 increased to 131 as compared with 113.1 in the previous month. During the April-October 2021 period, it stood at 114.8 as compared with 78.7 in the previous financial year.

However, its President Pradeep Multani said that 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. Multani said 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. The PHD Chamber of Commerce and Industry (PHDCCI) Economy GPS Index is a composite index of three lead economic and business indicators with a 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 chamber said GST collections indicate the momentum of business activity, passenger vehicle sales is a broad indicator of demand activity in the economy and the movement of the Sensex indicates the mood of both domestic and foreign investors.