Towards Economic Revival

Finally, statistics indicate a revival of the Indian economy. After eight-long-months, GST collections have crossed one lakh crore mark. This is the first time in the ongoing fiscal that the feat has been achieved. More heartening is the fact that the GST collection figure is 10 per cent higher in comparison to the figure for the same month last year. Apart from economic revival, the said figure also indicates that India is on the back end of the Covid-19 fight wherein the economy of the world has been virtually brought to breaking point. So, along with the three major economic sectors namely Agriculture, Manufacturing and Service, Covid-workers all over the country should be praised for making it possible.

As the pandemic situation is largely under control, the rise in GST collection is largely due to the festive season. Overcoming the fear of Covid-19, people have started spending once again on other items apart from food. It may be mentioned here that since the outbreak of the pandemic, people preferred saving to spending. So, GST collections even during the initial unlocking phases were not satisfactory to say the least. Many economists had suggested numerous ways to increase spending by citizens. But nothing could deliver the goods as people chose to remain mostly indoors fearing an attack of the virus. The fear is now surely disappearing as the fatality rate is the lowest in India. This is no mean achievement. Rather, it is one of the greatest achievements of Independent India as in this context the country has beaten all developed nations of the world in combating Covid-19.

Now, we should strive hard to maintain the growth rate at the present level. The statistics may look satisfactory; but at the same time we should not forget that during the festive season the economy usually picks up. From this perspective, it can be said that festivals do play the role of industries in some aspects. Take the example of West Bengal as the once industrially developed state which is now battling hard to keep its economy afloat. At present, the Durga Puja festival in the state is a major source to keep the state’s economy healthy. During the said festival, per capita income of Bengal goes higher than usual. According to many economists, the same phenomenon has been seen in India during the latest festive season.

The signs of revival will definitely help the Indian population fight against the prevailing situation. However, there are still a few trouble spots. For example, car sales have gone up. But the growth was limited solely to private vehicles. Not much growth was seen in the sale of commercial vehicles. It means that it is still not business as usual. Industry is not in full throttle as yet. Same is the case with the service sector. Both international and domestic tourism are not likely to be fully operational in the near future. Keeping all these factors in mind, Indian economy will have to plan meticulously to avoid any hindrances to its revival.