As India gradually emerges out of the strict and unyielding coronavirus lockdown it had imposed to curb the spread of the deadly contagion, the economy of the country which had come to a standstill is showing positive and encouraging signs of robust economic recovery.
If statistics are to be believed, Indian economy is set on its path for a steady and sustained financial revival as businesses and economy continues to unwind. Promising numbers from several sectors having profound impact on the overall economy suggest that the stagnation induced by coronavirus lockdown is long behind us and the country is once again marching towards growth.
The unwinding of the nationwide lockdown has predictably had a salutary effect on the debilitating economy reeling under the restrictions imposed by the country earlier this year. While the initial spurt in economic activities in July was considered by many as a result of pent-up demand because of the strict lockdown imposed for about 3 months, the latest statistics from October indicate that India’s growth story, which many ‘political commentators’ ill-disposed to the Modi regime dismissed as moribund, is well on its path to a sustained recovery. The festive season
Automobile sector records an impressive growth rate
One of the most significant factors suggesting healthy economic revival is the growth registered in the automobile sector. Sales number recorded by Hyundai show that it has never had such a good October since its debut in India. It has sold 56,605 units in the Indian market in the last month, going past its previous best of 52,001 units registered in October 2019. The total sales, including domestic and export, is 8.2 per cent higher than the October 2019 numbers, solidifying the revival story.
Perhaps the biggest growth story in the Automobile sector is charted by Maruti Suzuki which reported a staggering 17.9 per cent year-on-year growth in October 2020. From selling 1,41,550 units in October 2019, Maruti Suzuki sold 1,66,825 units in October 2020.
Two-wheelers segment also show encouraging signs of economic revival
Similar is the story for Hero Motocorp, which had racked up a splendid sales figure in the month of October. Indian multinational two-wheeler company Hero MotoCorp Ltd witnessed the highest-ever sales in a single month in October 2020 after the company sold over 8 lakh motorcycles and scooters in this month alone. As per a statement issued by the company, Hero MotoCorp recorded a growth of 35 per cent as compared to the corresponding month of last years. In October 2019, the company had sold 599,248 units while this month 806,848 units were sold by the company. This came after Bajaj Auto MD Rajiv Bajaj last week lamented that two-wheeler sales in the country remained dismal.
Bajaj Auto has also posted encouraging numbers as its year-on-year growth in October showed a spectacular rise of 18 per cent to 470,290 units from a year ago. This is its highest ever sales recorded in a month, according to the company’s regulatory filing. Pulsar brand recorded sales of over 170,000 units.
GST inflows cross Rs 1 lakh crore mark first time since February 2020
Revenues collected from GST have surpassed Rs 1.05 lakh crore in October 2020, 10 per cent up from the previous year, and highest since February 2020. The increased GST collection is one of the clearest sign yet of the economic recovery after it registered 23.9 per cent contraction in the first quarter of the year.
According to the data released by the Finance Ministry on Sunday, the gross GST revenue collected in October was ₹1,05,155 crore, 10.25% higher than a year ago, and 10.1% more than the indirect tax revenue garnered in September.
“The growth in GST revenue as compared to that in the months of July, August and September 2020, of -14%, -8% and 5% respectively, clearly shows the trajectory of recovery of the economy and, correspondingly, of the revenues,” the Ministry said.
Analysts have attributed the current uptick in the GST inflows partly to the revival of the economy, along with the festive demand boost and input tax credits as well as other reconciliations that were due for businesses in September. Similarly, the experts believe that the demand could remain robust for the month of November as well on account of continuing festivities.
Indian government working towards providing another economic fillip to sustain growth: Finance Secretary Ajay Bhushan Pandey
To give a sustained character to this economic revival, Finance Secretary Ajay Bhushan Pandey on Sunday said that the government is working on providing another stimulus package to boost the economy. The official reassured that the Indian economy is not only on its path to recovery but is also poised for sustained growth.
Speaking to ANI in an interview, Pandey said, “We are assessing the situation as to which sector or segment of the population is in the need of government intervention and are calibrating our strategies accordingly. We keep are soliciting suggestions from industry bodies, trade associations, various ministries and after going through their suggestions and requirements of the economy, and will come out with effective and timely measures.”
Decline in COVID-19 cases augurs well for the sustained economic growth
One of the significant factors in this dramatic resurgence of the Indian economy is the steady decline in the coronavirus cases reported across the country. The decline in the cases meant that the markets were allowed to open up that plays a crucial role in cranking up the economy. New COVID-19 cases in the country continue to fall for the seventh straight in the country, albeit with a lower rate of decline.
The week that ended on Sunday recorded a 12 per cent drop in the new cases as compared to the week before that saw a 16 per cent decline. However, the number of fatalities continues to decrease rapidly, with 3,586 deaths reported in the last week, a drop of 21 per cent as compared to the previous week.
Further, PMI for manufacturing and services has recovered to 56.8 and 49.8, respectively in September 2020.
With pandemic relatively under control and economic activities steadily mushrooming, analysts believe that if the trend persists, India will be well-placed to recoup the losses it had endured during the nationwide lockdown imposed earlier in the year.
Indian economy to bounce back stronger: FICCI
FICCI president Sangita Reddy on Sunday said that the strategy of Indian government of dealing with the Chinese coronavirus crisis will ensure that our economy will bounce back and emerge much stronger. Hailing lockdown when world over everyone had to choose between saving lives and livelihood, Reddy said that focussing on lives and ramping up health infrastructure has paid off.