Amid the deluge of negative figures and projections about the Indian economy, the news that GST collections are up can be construed as finding an oasis in a desert. While it will be too early to conclude that the economy is sure to ride on this tide and get out of the woods very soon, this is the sign everyone was waiting for. The national talk is that GST revenues have surpassed Rs 1.05 lakh crore in October which is an increase of about 10% of the figure exactly a year ago.  

Coming to these ‘healthy figures’ and the reasons thereof, it’s clear that the festive spirit when people have the natural inclination to buy has played the catalytic role. Hope has also multiplied since the whole of November when festivity will see an extension as well as December is still left and many economists are of the opinion that nothing could be better for a sagging economy if the tempo persists during  this approaching period. In terms of precise figures, GST collections now stand at Rs 1,05,155 crore which is not only 10.25%  higher than Rs 95,379 crore in October 2019 but almost equal to that in February 2020 when lockdown(s) and the pandemic was not on the horizon. It needs a recounting that, the first quarter of the current 20-21 FY has been an economic disaster with contraction reaching as high as minus 23.9%, an unmatched figure so far in the economic history of the country. It is not difficult to arrive at the immediate reason for this uptick- ease of lockdowns and allied Covid restrictions. However, it’s not without reasons why words of caution are also being spelt out by economists, who otherwise see the development as a ray of hope. Their chief argument is that it’s largely due to festive spending and if the trend sustains at least throughout the remaining two months of the year, something definitely positive can only be inferred.

But one thing is gradually becoming clear- the key to the economic turnaround of India lies in the hands of none other than the common people themselves (read their purchasing power or strictly in the language of economics, the demand side of the economy). This has been wiped out to a great extent and without mending this fast, no substantial long-term improvement should be expected. A further economic package that would effectively infuse more liquidity in the economy and increase the capacity of spending of the hitherto unattended segment i.e. the lower middle class comprising the huge informal sector people will be most suitable.

A chance has come. To make the ‘green shoots’ turn more greener, it’s time to be meaningfully magnanimous. 

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Kenter Joya Riba

(Managing Editor)
      She is a graduate in Science with post graduation in Sociology from University of Pune. She has been in the media industry for nearly a decade. Before turning to print business, she has been associated with radio and television.
Email: kenterjoyaz@easternsentinel.in / editoreasternsentinel@gmail.com
Phone: 0360-2212313

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