What’s the News?
October saw India’s Manufacturing PMI rise to 58.9 in, revenue collected from GST crossing Rs 1 Lakh Crore, and demand for Mobile Phones, Home appliances and Cars surging.
What does it mean?
The Indian economy which had come to standstill is showing positive and encouraging signs of robust economic recovery. The festive season delivered much-needed boost to the economy. Manufacturing purchasing manager index (PMI) rose to 58.9 for October which is the highest reading in a decade. The PMI reading above 50 indicates an expansion in the economy. This comes amid a jump in GST revenue collection and Auto Sales.
In October GST inflow cross Rs 1 Lk Crore mark, the first time since February 2020. The increased GST collection is the clearest sign of the economic recovery after it registered a 23% contraction in the first quarter of this year. Automakers posted strong monthly sales numbers signalling a possible demand revival. E-waybills a measure of goods movement logged in at 64.1 million in October - the highest in two years.
How does this affect your wealth?
Three weeks ago, we had written about green shoots in the economy. The latest statistics from October confirms sustained economic recovery. The revival of the economy will lead to better performance of companies and it will reflect on your investment performance.