oppn parties Good Signs Of Economic Recovery

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  • India's sovereign green bonds were oversubscribed four times as the RBI received 266 bids worth Rs 32892cr agaisnt the target of Rs 8000cr
  • Google tweaks its Android and India app store policy to allow manufacturers and users to choose certain things instead of compulsorily using Google apps after the CCI order and fine for unfairly dominating the market
  • Former US secretary of state calls former Indian external affairs minister Sushma Swaraj a "goofback" and a "hinterland political hack". MEA S Jaishankar slams him
  • Jamia screening of BBC documentary on Gujarat riots cancelled after the university was turned into a fortress and later 13 students were detained by the police
  • Supreme Court grants conditional interim bail for eight weeks to Lakhimpur Kheri accused Ashish Mishra. The bail can be further extended based on his conduct. He was asked to stay outside Delhi-NCR and UP and surrender his passport
  • After the JNU administration tried to thwart the students from screening the BBC documentary on the Gujarat riots and PM Modi, now students of Presidency and Jadavpur universities in Kolkata have decided to screen it 5 times next week
  • While a US research frim Hindenburg says its analysis found the Adani group overleveraged and claimed that its bubble will burst very soon and that sent the price of group companies crashing (Adani companies lost a combined Rs 55000cr), Adani group said the report was 'baseless' and 'malicious'
  • This time Enforcement Directorate arrests TMC spokesperson Saket Gokhale under PMLA for money laundering
  • Padma awards announced on Republic Day: Mulayam Singh Yadav, architect Balkrishna Doshi and ORS pioneer Dilip Mahalanobis get Padma Bibhushan posthumously, Padma Bhushan ius awarded to Kumar Mangalam Birla and 8 others and 91 get Padma Shri
  • Stocks fall big time on Wednesday on F&O expiry, finalncial and banks take big hit: Sensex tumbles 773 points to 60205 and Nifty 226 points to 17892 even as the market volatility meter shoots up by 8.51%
  • World Cup hockey: Germany stun England 4-3 to reach semifinals; Netherlands beat Korea 5-1 to enter last four
  • Australian Open: Sania Mirza and Rohan Bopanna reach the finals
  • Suryakumar Yadav is named ICC Cricketer of the Year 2022 and Renuka Singh gets the ICC Emerging Cricketer of the Year 2022 award
  • BCCI gets a whopping Rs 4670cr in the auctions for the 5 teams in WIPL or as it will be known now, WPL. Adani Sportline gets Ahmedabad for Rs 1289cr while Mumbai Indians get Mumbai for 913cr
  • Calcutta HC overturns the hookah bar ban in Kolkata by saying that it is not an illegal trade
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oppn parties
Good Signs Of Economic Recovery

By A Special Correspondent
First publised on 2021-01-01 10:00:03

With GST collections at Rs. 1,15,174 lakh crore in December being the highest since the integrated tax system was introduced in the country, the economy seems to be well on the path of recovery. The collections showed that domestic revenues had jumped by 8 percent and import by 27 percent than last month. Year-on-year, the collections were 12 percent higher than December 2019. Filing of GSTR-3B returns has also jumped substantially.

The government said that "this is the highest growth in monthly revenues for the last 21 months. This has been due to combined effect of the rapid economic recovery post-pandemic and the nation-wide drive against GST evaders and fake bills with many systemic changes introduced recently, which have led to improved compliance".

The finance ministry statement spells out the reasons succinctly. The economy is recovering fast and the efforts of the government in providing relief packages and the policy of the RBI in resisting the temptation to mop up excess liquidity in the system despite inflation being above the range specified by the MPC and keep an accommodative stance have borne fruit. Demand is picking up across the board (as reflected in the rise in Purchase Manager's Index). Compliance has also jumped up due to the drive against evaders and cross checking of uploaded data.

But the only worry is the continued decline in the core sector. The eight key core sectors contracted by 2.6 percent in November.  It was the 9th straight month of decline. It is a well known fact that vigorous economic recovery happens when core sectors perform well as they set off a chain reaction which propels all sectors of the economy. The government has till now resisted all appeals to invest heavily in infrastructure. But with tax collections buoyant, it should seriously consider heavy investments to provide a bigger impetus to the revival.