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As economic activities improve, the PHD Chamber of Commerce and Industry has suggested that there is a need to boost household consumption and business investment for increased aggregate demand.

"Going forward, there is a need to further fuel the drivers of household consumption and business investment for increased aggregate demand, while moving towards a more inclusive economy and ensuring fiscal sustainability," Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, said in a statement.

The trend in PHDCCI Economy GPS Index shows that the Indian economy is moving forward in the direction of fast economic momentum to achieve a double-digit growth in FY 2021-22, the statement said.

Aggarwal said that on the back of robust measures of policy stimulus undertaken by the government and the announcement of a demand creating, growth-oriented and investment stimulating Union Budget 2021-22, the higher trend of PHDCCI Economy GPS Index in March 2021 reinforces the growing business and demand momentum in the country and further the government's view that the economy is in a V-shaped recovery.

The PHDCCI Economy GPS Index, during the period April-March of FY 2020-21, stands at 95.2 as compared with April-March FY 2019-2020 at 97.8. The growing trend of PHDCCI Economy GPS Index indicates a stronger outlook of Indian economy in the FY2021-22, further supporting the PHDCCI's revised growth projection for Indian economy at (-)7.2 per cent for the current financial year 2020-21, the statement said.