New Delhi: Experts claimed that following the battle with the Coronavirus, the bullish trend is returning to the Indian economy. The experts pointed to the reports, giving positive indications regarding the economy, received during the last two days. The PMI index of India has been upgraded for the third successive month. There is an improvement in automobiles sales. The GST collection has increased in October. The Union Finance Secretary gave indications that the government could announce a new relief package to provide further impetus to the economy.
For the first time in eight months, the investors have been enthused with upgradation of the PMI index following the reports that GST collections crossed Rs. 1 trillion. As per the Purchasing Management Index (PMI) announced by the Markit group, there is a growth in manufacturing and demand, in the country. This increase has been made for the third successive month and the report claims that the increase from September to October, is the highest in 13 years.
The PMI index indicates the economic trend in the manufacturing and services industries. This is announced based on surveys conducted every month. If the index is below 50 the economy is said to be regressing and index above 50 means the economy is progressing. The PMI index for October is 58.9 and PMI for September was 56.7.
The obstacles and problems created by the Coronavirus pandemic are clearing up and the demand is rising. Manufacturers are receiving new orders and production is on the rise. Companies are expressing confidence that the increasing trend in sales will continue for the next few months. Pollyanna De Lima, the principal economist for Economic Indices at IHS Markit, said that this becomes clear from the purchases of items necessary for production.
The demand in the automobile sector is increasing in the country. Another report clarifies that sale of commercial vehicles and two-wheelers is increasing. Hero Moto, Maruti Suzuki, Tata Motors, Hyundai recorded higher sales than the festive season last year. The demand for fuel also has reached pre-Lockdown levels.
Against this background, Sangeet Reddy, Chairman of ‘Federation of Indian Chamber of Commerce Industry’ (FICCI), the apex body of the Indian industry, said that the Indian economy is poised to grow faster. The problem faced during the Coronavirus crisis was how to balance between life and sustenance. But India focused on saving lives by strengthening the medical infrastructure. This was a very positive step. Reddy said that now, the government may have to take some tough decisions for sustenance.
Meanwhile, Union Finance Secretary Ajay Bhushan Pande said that indications of growth in the economy are being received. The growth in GST collection is a very good example in that context. Pande clarified that the government is not thinking of increasing taxes. Hotel and tourism sector are in a difficult state. Pande said in an interview that the government is fully aware of the situation and the next package will address, more particularly, the sectors worst hit by the crisis.