India economy set for double digit growth in FY22: PHDCCI

New Delhi: As economic activities gather pace and investor sentiments revive, GDP growth is likely to enter a double-digit growth trajectory and may grow at more than 11 per cent in the next financial year, showed a report by PHD Chamber of Commerce and Industry.

A sharp recovery in GDP growth in Q3 FY 2020-21 at 0.4 per cent as compared with a contraction of 7.3 per cent in Q2 and 24.4 per cent in Q1 2020-21 (as per revised NSO estimates) is a result of impactful reforms undertaken by the government since March 2020, said Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry.

"As a result of recovering investor sentiment, the economy has potential to accelerate at 11 per cent growth trajectory in the next financial year 2021-22 as envisioned by the FY 2020-21 Economic survey of the Government of India," he said. Aggarwal noted that the series of broad-based policy measures undertaken by the government during the last 11 months have enhanced the economic activity at significantly higher level. PHDCI Economy GPS Index was 103 in February 2020, with an improvement of 19 points in February 2021 over February 2020.

The trend in PHDCCI Economy GPS Index shows that the Indian economy is moving forward in the direction of improved momentum as compared to that of its level in February 2020, according to the President of the industry body.