Major Stimulus Needed To Mitigate Impact, Says PHD Chamber Head

With sharp recovery in the key economic and business indicators in the third quarter of 2020-21, the economy has returned to the pre-Covid levels in the fourth quarter of 2020-21, however, Government should act swiftly to support the emerging growth scenario by providing substantial stimulus and reform measures to mitigate the daunting impact of second wave of pandemic on economy, Mr Sanjay Aggarwal, President of the PHD Chamber of Commerce and Industry (PHDCCI).

The second wave of Covid-19 has struck like a storm throughout the country. The impact is more than the previous wave in 2020, noted Mr Aggarwal according to a statement issued by the industry chamber.

The Central Government had last year acted swiftly to mitigate the daunting impact of Covid pandemic with a great support to people, trade and industry, the same steps are needed at this juncture once again, he added.

PHDCCI Economic & Business Momentum (EBM) Index of the 25 lead economic and business indicators projects more than 1% growth rate of GDP in Q4 FY 2020-21, Mr Aggarwal informed.

Calibrated measures are required at this juncture to maintain the growth momentum and to achieve an anticipated growth trajectory of a 11% GDP growth rate in FY 2021-22, said Mr. Sanjay Aggarwal.

GDP growth rate at 0.4% for Q3 FY 2020-21 has been very much in line with our projections in the PHDCCI Economic and Business Momentum (EBM) Index released on February 22, 2021, in which we had estimated that the GDP growth will be at around 0.1% to 1% in Q3 FY 2020-21, the chamber’s head said.

Going ahead, policy measures are needed to support demand creation and to have a multiplier effect on enhanced production possibilities, expansion of employment in factories, expansion of capital investments and overall virtuous circle of growth and development of Indian economy, said Mr. Aggarwal.