Although the economic activity remained intact in September 2021, high cost of inputs vis-à-vis skyrocketing international commodity prices, shortages of containers and unavailability of some raw materials, such as semi-conductors, would have an impact on the demand and production possibilities in the coming months, according to PHD Chambers of Commerce and Industry President Pradeep Multani.
The prices of the basic raw materials have been increased by more than 50 per cent during the last one year and they are posing a challenge to the small businesses to operate as these would impact their costs of production and affect their competitiveness in the domestic and international markets, Multani said in a release here.
The PHDCCI Economy GPS Index for September 2021 has decreased to 116.2 as compared to 116.7 for August 2021 (Base year 2018-19 = 100). The sequential growth of SENSEX (average of daily close) has increased by 6.4% from 55238 in August 2021 to 58781 in September 2021. The sequential growth of GST collections increased by 4.5% from Rs 1,12,020 crore in August 2021 to Rs 1,17,010 crore in September 2021. However, the sequential growth of passenger vehicles declined by (-)20.1% in September 2021 from 232224 units in August 2021 to 185636 units in September 2021.
PHDCCI Economy GPS Index is a composite index of 3 lead economic and business indicators with base year at 2018-19=100 which measures the broad economic and business activity. This Index is based on the monthly values of three high frequency indicators viz., GST collection (Rs in Crores), Passenger Vehicle Sales (units) and SENSEX (daily average) and it helps to find the direction of the economy. The three broad indicators are representing not only demand and supply in the economy but also revenue growth of the government and movement of financial markets in the country. GST collections indicate the momentum of business activity, passenger vehicle sales is broad indicator of demand activity in the economy and movement of SENSEX indicate mood of both domestic and foreign investors.
The PHDCCI Economy GPS Index during the period April–September of FY 2021-22 stands at 112.6 as compared to 73.5 for April–September FY 2020-2021. This Index at 116.2 for September 2021 is higher by 16.0 points from the Economy GPS Index for September 2020 at 100.2.
PHDCCI Economy GPS Index has shown sharp recovery from the lows of 39.6 for April 2020 to 124.3 for April 2021, 91.5 for May 2021 as compared with 50.1 for May 2020, 107.5 for June 2021 as compared with 75.1 for June 2020, 119.7 for July 2021 as compared with 85.6 for July 2020, 116.7 for August 2021 as compared with 90.5 for August 2020 and 116.2 for September 2021 as compared with 100.2 for September 2021.
