India’s supply chain blew off previous records and hit a record level high this October. The generation of E-way bills is the key indicator of this heavy movement ensuring healthy growth of economy. The record hitting numbers are 117.25 million, accounting to 17% year-on-year rise.
Data from the goods and Services Tax Network (GSTN) reflects a strong trade momentum, riven by the increased manufacturing output and retail demand during festival season. The data also suggest a steep jump in figures from October to September.
The demand starts rising high in festival season, which usually starts from August- September, festival with Raksha Bandhan, Ganesh Chaturthi, and Onam, leads into Navratri, Dussehra, Diwali, and concludes with Christmas an ends at new year.
The companies also see soaring number towards the end of the year, while the inventory cleaning.
Festival Season Demand In Focus-
Fueled by the festival season demands, Goods and Services Tax (GST) collected Rs 1.87 trillion this October. According to records this is the second highest monthly revenue since GST’s implication, from 2017. The figures suggest 8.9% annual increase, after Rs 1.73 trillion collection in September, reporting growth of 6.5% year-on-year.
“In the last few months, India’s e-way collections have been doing exceedingly well,” said Manoranjan Sharma, chief economist at Infomerics Ratings, and former chief economist at the Canara Bank.
“This clearly shows that technical glitches, leakages and inadequate coverage are now history. More importantly, it clearly demonstrates the strength and robustness of the India growth story, since the rising e-way collections are often taken as a proxy for the traction in the macroeconomic growth,” he added.
Last when the GST revenue set records was in April with peak of ₹2.1 trillion. The October trend has overcome the past figures and has given new records, This shows a consistent upwards trend.
Festival Demand Creates Strong performance In Economic Indicators
Strong E-way bill generation is interlinked with other economic indicators. Around the festival season, manufacturing activities also increase with the festivals around the corner. The HSBC India Manufacturing Purchasing Managers Index (PMI) reported a rebound in October to 57.5, higher than September’s eight-month low of 56.5, driven by strong domestic and international demand.
Different sectors in India were soaring after the extensive demand from consumers due to the festival season. The service sector in India recorded gains, with the PMI reaching 58.5 in October, up from 57.7 in September. Auto sales were also high during the festival season, with the auto sector boosted by sales reaching 2.83 million units in October, rising 32% annually.
With E-way bill generation and GST collections rising, India’s tax revenue shows a clear improvement. This year, the average GST collection has been recorded at Rs 1.81 trillion in the current FY, which is more than the Rs 1.68 trillion collected in the previous year.
