In much-needed relief to the government, the Goods & Service Tax (GST) mop-up in the month of September grew by 4% in September after contracting for 6 months pointing towards economic recovery. While GST collections still remain below pre-Covid levels, the recent figure for September shows recovery in demand after months of disruption due to lockdown.
The figure for September was reported at Rs 95,840 crore against Rs 86,499 crore in August, according to the finance ministry.
“During the month, the revenues from import of goods were 102% and the revenues from the domestic transaction (including import of services) were 105 % of the revenues from these sources during the same month last year” said the Ministry of Finance in a statement.
Manufacturing activity fastest in 8 years
Manufacturing activity expanded at its fastest pace in almost 8 years giving hope in an economy forecasted to shrink in double digits in the current financial year.
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) increased from 52 in August to 56.8 in September, pointing towards consistent improvement. The survey gauges the sentiment of purchasing managers of 400 manufacturers.
Output prices increased for the first time in six months signalling towards a rise in input prices as well. The data point towards a mild recovery.
“While uncertainty about the pandemic remains, producers can at least for now enjoy the recovery,” said Pollyanna De Lima, economics associate director at IHS Markit.
Automakers too have reason to look ahead owing to 13% improvement in the number of cars sent to dealerships for the festive season ahead. Tractor sales, an important factor in rural demand, too showed improvement as Mahindra & Mahindra reported 18% jump in sale of farm equipment pointing towards amid a good show from monsoons.
Improvement in freight loading
Indian Railways has earned more revenue in the month of September as compared to last year inspite of COVID related challenges. In September 2020, Indian Railways earned Rs. 9,896.86 crores from freight loading which is Rs 1,180.57 crores higher compare to last year’s earnings for the same period (Rs 8716.29 crores). The increase in freight revenue is 13.54%.
Finance Secretary AB Pandey reportedly said e-way bill hit a record high in the month of September. More than 5.74 crore e-way bills have been generated. Over 4.83 crore e-way bills were generated in July whereas on September 30 alone, almost 26.2 lakh e-way bills were generated, the most on a single day.