oppn parties Festival Buying Sets The Wheels Rolling For The Economy
OPINIONS : Strongly Expressed

January 29, 2023

People Are Talking About

Welcoming 2023

News Snippets

  • RBI governor Shaktikanta Das says that inflation is easing and the current account deficit is manageable
  • Adani Enterprises FPO sees just 1% subscription on the first day as the stock goes down to Rs 2762, much below the price band of Rs 3112-3276
  • Stocks bleed on Friday post the Hindenburg report as Adani stocks are hammered: Sensex loses 874 points to 59330 and Nifty 287 points to 17604
  • Rs 263cr TDS scam detected by the I-T department. A mid-level officer was the kingpin and had amassed huge wealth
  • Women's U-19 World Cup -India reaches the final by beating New Zealand by 8 wickets
  • New Zealand beat India by 21 runs in the first T20 as spinners choke Indian batters
  • Sania Mirza and Rohan Bopanna lose in the Australian Open finals
  • Sania Mirza and Rohan Bopanna lose in the final of the Australian Open
  • India to play New Zealand in the first T20 of the three-match series in Ranchi today
  • RBI has proposed special purpose vehicles (SPEs) mechanism to sell bad loans to interested investors via securitization
  • JD(U) decides not to attend the Bharat Jodo Yatra finale in Srinagar
  • Hindenburg defends its report on the Adani group, dares Gautam Adani to sue it in the US
  • BJP's talks with Tipra Motha in Tripura make no headway but the party is confident of winning in the ensuing elections
  • Pathan is a super hit at the box office: Rs 57cr in India (worldwide Rs 106cr) on Day 1 and then Rs 70cr on Day 2 which was Republic Day holiday
  • Centre tells Delhi HC that Covid vaccines can't be mixed when taking the second dose
A Mirage2000 and A Sukhoi 30 of the Indian Air Force on a training mission crashed separately, in Bharatpur in Rajasthan and Morena in Madhya Pradesh, killing one pilot
oppn parties
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.