The economic activity is continuously growing in steady momentum supported by the domestic consumption, supportive policy environment and diminishing global uncertainties, said Saket Dalmia, President, PHD Chamber of Commerce and Industry on Tuesday.
The PHDCCI Economy GPS Index for January 2023 remained steady at 146.9 as compared to 140.7 in December 2022 and 140.7 in November 2022 due to buoyancy in consumption patterns and softening inflation.
In a press statement, Dalmia said, "The GPS index is in a steady momentum and holds a significant correlation with economic growth, we expect FY23 GDP growth to surpass 7 per cent."
Demand trajectory in the economy remains intact as passenger vehicles, with compact cars and utility vehicles, grew 3,27,771 in January 2023 from 2,54,287 in January 2021 marking a whopping around 28 per cent year-on-year (YoY) growth as compared to January 2022.
Supply-side indicator, the gross GST revenue collected in the month of January 2023 is Rs 1,55,922 crore. The revenues in the current financial year up to the month of January 2023 are 24 per cent higher than the GST revenues during the same period last year, continuing to display very high buoyancy.
However, the sequential growth of SENSEX (average of daily close) has shown a deceleration (-)3.5 per cent percent in January 2023 as compared to its corresponding value in December 2022, added Dalmia.
Also, the pace of economic activity showed momentum on the back of strong demand side, supply side and investments supported by the various structural reforms undertaken by the Government during the last 3 years.
Notably, despite global headwinds, the Indian economy is projected to grow at 6.9 per cent by the World Bank. However, we are hopeful that economic growth will surpass 7 per cent in the current financial year supported by the resilient demand conditions and improving supply side.
"RBI recently started slowing the rate hikes with a hike by only 35 basis points to 6.25 per cent in order to control retail inflation and maintain economic growth," said Dalmia.
Going ahead, continued hand holding by the Government is required to mitigate the impact of recent geo-political developments while maintaining a balance between inflation and economic growth, stated the President.