High foreign exchange reserves, strong stock market indicate recovery in coming months: PHD Chamber of Commerce and Industry

MUMBAI: Even as India witnessed two back to back fall in its quarterly gross domestic product, the country could be on the path to recovery, PHD Chamber of Commerce and Industry has said.

As per a report by PHDCCI, some indicators show that India could be on a recovery path. High foreign exchange reserves, strong stock market, improvement in employment scenario indicate that recovery to become stronger in the coming months, it said.

“Economic and business indicators such as stock market, employment, railway freight, exchange rate, FOREX reserves and Nomura India Business Resumption Index (NIBRI) have shown positive sequential growth in November 2020 as compared with October,” the report said.


Level of employment in the country is improving as unemployment has improved from 7% in October 2020 to 6.5% in November. And indicators such as E way bill, passenger vehicle sales, manufacturing PMI and goods and services tax (GST) collection have shown sequential deceleration in November 2020 as compared to the previous month of October 2020, the report added.

“Provision of Rs 1.46 lakh crore under Production Linked Incentive Scheme for 10 champion sectors will help link India to global value chains, encourage exports, give companies a competitive edge in the global market and make India a global manufacturing hub in the coming times,” Sanjay Aggarwal, President, PHDCCI.