New Delhi, Jan 5 (IANS): The business sentiment and demand momentum in India has improved tremendously since September 2020, according to PHD Chamber of Commerce and Industry's Economy GPS Index.

A report by the industry body said that as a result of recovering investor sentiment, the 'PHDCCI Economy GPS Index' stood at record 124.1 in December 2020.

It noted that this is the all-time high value of PHDCCI Economy GPS Index as measured across the last three financial years, indicating an improvement by 14.9 with regard to its value in December 2019.

"The analysis of the movement of PHDCCI Economy GPS Index over the years shows that there has been tremendous improvement in the business and demand momentum in the economy since September 2020," it said.

This higher trend of PHDCCI Economy GPS Index reinforces the positive outlook for the Indian economy and further the PHDCCI's view that the economy is in a V-shaped recovery, as per the report.

The industry body has developed a composite index of three lead economic and business indicators with base year at 2018-19 with base index at 100, which can be used to measure the broad economic and business activity.

The index is based on the monthly value of three high frequency indicators -- GST collection, passenger vehicle sales, and daily average of Sensex.