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  • PHDCCI Economy GPS Index for February 2022 by PHD Chamber, Economy on the path of higher growth trajectory

    Published on March 6, 2022

    Economy has shifted tracks towards the higher growth trajectory in the month of February 2022 supported by a strong and sustained performance of the key economic indicators, said Mr Pradeep Multani, President, PHD Chamber of Commerce and Industry, in a press statement issued here today.

    The PHDCCI Economy GPS Index for February 2022 has increased to 134.5 as compared to 133.2 for January 2022, marking the highest of FY 2022, said Mr Pradeep Multani.

    PHDCCI Economy GPS Index captures the momentum in supply side business activity through growth in GST collections, demand side consumer behaviour through volume growth in passenger vehicle sales and sensitivity of policy reforms and impact of domestic and international economic and business environment through the movement of SENSEX at the base year of 2018-19=100, said the Industry Body.

    Passenger vehicles growth, which is a significant demand indicator in GPS index, has recorded a sequential growth of 19.1, increasing from 254,287 units in January 2022 to 302,756 units in February 2022, said Mr. Pradeep Multani.

    Though February 2022 has been the fifth month when GST collections have crossed Rs 1.30 lakh crore mark, the sequential growth of GST collections has decreased by 5.6% from Rs. 140,986 crore in January 2022 to Rs. 133,026 crore in February 2022. The sequential growth of SENSEX (average of daily close) has also decreased by 3.2% in February 2022 from 59586 in January 2022 to 57698 in February 2022 amid the geo-political tensions, majorly the Russia-Ukraine war, said Mr. Pradeep Multani.

    Economic recovery so far (Sequential)

     PHDCCI Economy GPS Index2018-19=100February 2021March 2021April 2021May 2021June 2021July 2021August 2021September 2021October 2021November 2021December 2021January2022February 2022
    118.8122.9124.391.5107.5119.7116.7113.1127.0125.2123.5133.2134.5

    Source: PHD Research Bureau, PHDCCI Economy GPS Index.

    The PHDCCI Economy GPS Index during the period April–February of FY 2021-22 stands at 119.6, which is 28.1 points higher than April–February FY 2020-2021 period index of 91.5, said Mr. Pradeep Multani.

    The PHDCCI Economy GPS Index at 134.5 for February 2022 is higher by 15.7 points from the Economy GPS Index for February 2021 at 118.8, said Mr. Pradeep Multani.

    Economic recovery so far (Y-o-Y)

    PHDCCI Economy GPS Index2018-19=100February 2018February 2019February 2020February 2021February 2022
    93.698.8103.2118.8134.5

    Source: PHD Research Bureau, PHDCCI Economy GPS Index.

    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, 113.1 for September 2021 as compared with 100.2 for September 2020, 127.0 for October 2021 as compared with 109.6 for October 2020, 125.2 for November 2021 as compared with 106.9 for November 2020, 123.5 for December 2021 as compared with 111.9 for December 2020, 133.2 for January 2022 as compared with 118.5 for January 2021 and 134.5 for February 2022 as compared with 118.8 for February 2021.

    Source: PHD Research Bureau, PHDCCI Economy GPS Index.

    Going ahead, the pace of economic activity is expected to remain strong on the back of various structural reforms undertaken by the Government during the last 22 months, said Mr. Pradeep Multani.

    The recent budget announced by the Government for the FY 2022-23 looks into the future while keeping a close eye on the ground. The Budget is a step forward towards the vision of creating an Aatmanirbhar Bharat and reflects a consistency in government’s approach in making India a Modern, Developed and Inclusive nation, said Mr. Pradeep Multani.

    PHD Chamber of Commerce and Industry (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. The PHDCCI Economy GPS Index, based on the monthly values of three high frequency indicators viz., GST collection (Rs. Crore), Passenger Vehicle Sales (units) and SENSEX (daily average), 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.

    Movement of Economy GPS over the months

    Month/ YearEconomy GPS Index
    FY 2018FY 2019FY 2020FY 2021FY 2022
    April 102.110439.6124.3
    May 100.198.150.191.5
    June 97.797.375.1107.5
    July72.3100.994.385.6119.7
    August96.8101.291.090.5116.7
    September98.2101.492.4100.2113.1
    October94.999.8102.0109.6127.0
    November92.097.4103.9106.9125.2
    December88.093.7101.0111.9123.5
    January96.7101.4107.1118.5133.2
    February93.698.8103.2118.8134.5
    March97.8105.680.0123.0 

    Source: PHD Research Bureau, PHDCCI GPS Index

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