oppn parties Festival Buying Sets The Wheels Rolling For The Economy

News Snippets

  • Amidst loud attack on the government for trying to change the Constitution, PM Modi says the Constitution is Gita, Bible and Quran for the BJP government
  • PM Modi says Congress circulating meat cooking and eating videos during Navratri and the month of Savan is indicative of its 'Mughal' mindset
  • Medical journal Lancet has said that medical data from India needs more transparency for correct analysis and policy action
  • India issues advisory for citizens to refrain from travelling to Iran and Israel as conflict escalates in the Middle-East
  • Rameshwaram Cafe blast accused arrested in Bengal hid in several Kolkata lodges before going to Digha in Medinipore from where they were arrested in a joint operation by the NIA and the state police
  • AAP leader Atishi says Centre is laying the groundwork to impose President's rule in Delhi
  • Elon Musk likely to discuss Starlink too with PM Modi
  • Elon Musk likely to discuss Starlink too with PM Modi
  • Currency in circulation rose by Rs 1.3 lakh crore in one year from FY23 to FY24
  • Gold jumps to nearly Rs 74000/ 10gm on MCX
  • Retail inflation was at 5-month low in March and IIP was at 4-month high
  • Stock markets crash on Friday - Sensex tumbles 793 points to 74244 and Nifty 234 points to 22519
  • Legendary boxer Mary Kom resigns as chef-de-mission of Paris Olympics squad citing personal reasons
  • IPL: DC beat LSG by 4 wickets as Kuldeep Yadav bowls a dream spell to restrict LSG to just 167
  • Bombay HC says Senior Citizens Act not a tool to settle property disputes but a law to ensure that seniors are not treated harshly and to resotre residential rights in houses they might have gifted to their children in their lifetime
West Bengal Police helps NIA arrest two Rameshwaram Cafe blast accused from Digha
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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.