oppn parties Festival Buying Sets The Wheels Rolling For The Economy

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  • Kapil Sibal leaves Congress, fills nomination for Rajya Sabha with SPs backing
  • RBI bans 5 NBFCs as it cracks down on e-lending platforms
  • Hindustan Motors to tie-up with Peugeot to bring out a redesigned version of the iconic Ambassador
  • GST Council to defer rate rejig due to inflation
  • Centre to sell 29.5% in Hindustan Zinc at an expected price of Rs 38000cr
  • Stocks remain negative on Wednesday: Sensex loses 303 points to 53749 and Nifty 99 to 16025
  • IPL: RCB beat LSG by 14 runs and end their dream run. Rajat Patidar scores a brilliant 112. RCB will take on RR to decide who goes through to the finals
  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
  • Delhivery and Venus Pipes shares list at premium of 10% and 8.7% respectively even when market sentiment was down
  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
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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.