oppn parties Festival Buying Sets The Wheels Rolling For The Economy

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  • Sonia Gandhi to take a call on who will be Rajasthan chief minister
  • Mallikarujun Kharge to be the new candidate to oppose Shashi Tharoor in the Congress presidential elections
  • RBI says that the September inflation rate may be higher than 7%
  • RBI hikes key rates by 50bps, downwardly revises FY23 growth rate to 7% from 7.2% earlier
  • Stocks recover well on Friday: Sensex gains 1016 points to0 57426 and Nifty 276 points to 17094
  • Mirabai Chanu wins gold easily at the National Games
  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
RBI hikes key rates by 50bps, stocks jump and recover 50% of the losses incurred in the last few session
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Festival Buying Sets The Wheels Rolling For The Economy

By Linus Garg
First publised on 2020-11-02 16:54:07

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

At last, some excellent news on the economic front. GST collections for October stood at Rs 1.05.055 crore, which was 10 percent higher than in October 2019. Before people rush in to say that this was due to the festival season, it should be kept in mind that in 2019, Durga Puja, Navratri, Dussehrah and Diwali were all celebrated in October. This year, Diwali is on 14th November. Hence, the combined festival sales will reflect in two months and the November GST collections will include Diwali festival purchases. Thus, the October collections this year show a huge jump and are a definite sign on economic recovery.

There are other signs of the economy quickly moving towards the pre-Covid levels and at times topping them. Hyundai and Hero Motocorp recorded their best ever monthly sales in October this year. While Hyundai sold 56,605 units in the month, Hero sold over 8 lakh units. Other auto companies like Maruti (18%), Tata Motors (79%) and Kia (64%) also registered above-average growth. The other giveaway indicators like fuel and electricity consumption also showed healthy growth. Diesel sales jumped 6% year-on-year in October, petrol jumped by 4% and electricity consumption jumped by more than 13%. These are sure signs of economic recovery.

Phased unlocking and lifting of most restrictions coupled with the surge in buying due to the festivals, has meant that economic activity has returned to pre-Covid levels in most sectors and has even crossed those levels in many. This is a good sign. But to sustain this demand, the Centre now needs to intervene by releasing funds to the states to undertake development activities and should make investments in infrastructure projects to generate jobs and start a chain effect that will benefit the manufacturing and services sectors. Once businesses start getting orders, the sentiment will improve magically and the economy will get out of the slowdown and lockdown rut.