Country comes out of technical recession: GST collection sets record for GDP growth of 0.4%, these are 5 reasons for the third quarter boom

Posted on 3rd Mar 2021 by rohit kumar

The Covid-19 has a profound adverse impact on the Indian economy. The reason for this is that there has been a decline in the economy in the first two quarters of the current financial year. Due to this, there was a risk of slowing down in the country. But economic activity is continuously improving after the unlock. This is indicated by the positive results of various recent sectors. These signals make it clear that the economy is moving rapidly towards pre-covid levels and the risk of recession has been averted.

 

GDP growth of 0.4% in Q3

The country's GDP grew by 0.4% in the third quarter of the current financial year 2020-21 ie October-December quarter. According to government figures, the country's estimated GDP for the quarter stood at Rs 36.22 lakh crore. The statement said that there has been a positive growth in GDP due to a spurt in exports and factory activities.

 

The data indicated a recovery in business activity in January. However, the government has projected an 8% fall in the country's GDP in the current financial year. GDP declined by 23.9% in the first quarter of the current fiscal and 7.5% in the second quarter.

 

Passenger car sales up 23% in February

Along with economic activity, passenger car sales also grew by 23% in February. The country's top-10 carmakers sold 2,98,694 units in February 2021. In February 2020, these companies sold 2,41,533 units. These top-10 car-makers accounts for 97% of the total domestic car market.

 

GST collection crosses Rs 1 lakh crore for the fifth consecutive month

The GST collection in February 2021 has been more than Rs 1.13 lakh crore. This is the first time since the implementation of the GST system that the GST collection has crossed Rs 1 lakh crore for five consecutive months. The GST collection is gaining momentum due to a spurt in economic activity and an increase in toughness on fake bills. Apart from this, the government is taking very strict steps to prevent leakage under the GST system.

 

Foreign investors invested Rs 1.87 lakh crore

Foreign institutional investors (FIIs) are continuously investing in the Indian equity market. FIIs have been net investors for the last five consecutive months. In these months, FII has invested Rs 1.87 lakh crore in India's equity market. Of this, an investment of Rs 25,787 crore has been made in February.

 

Petrol-diesel consumption reached pre-Covid level

 

The continuous improvement in economic activity is also indicated by the fact that the consumption of petrol and diesel in the country has reached the pre-Covid level. In February, government oil companies have sold 2219 TMT petrol. In February 2020, 2264 TMT petrol was sold. Similarly, diesel consumption has been 5811 TMT as against 6356 TMT in February 2020.

 

Oil consumption expected to grow 9.8% next year

 

The country is expected to grow 9.87% in oil consumption by March 2022 next year. If this happens, it will be the highest growth in the last 6 years. The government has said this in the initial estimate. The government has said that the country may consume 215.24 million tonnes of refined fuel in the next financial year. During the first 10 months of the current financial year i.e. April 2020 to January 2021, oil consumption declined by 13.5%. Consumption has decreased due to the lockdown imposed due to the corona.

 

The government's steps are started to give desired results: Panagariya

 

Former NITI Aayog vice-chairman Arvind Panagariya said on Tuesday that India's economy is growing at a rapid pace as steps taken by the government to increase spending have started yielding desired results. His statement comes at a time when it is expected to take even longer for India's economy to become US $ 5 trillion due to the coronavirus epidemic.

 

The eminent economist termed the government's decision to privatize two public sector banks in the next fiscal year as an unprecedented effort to correct a wrong made 50 years ago. He was referring to the nationalization of banks during the time of former Prime Minister Indira Gandhi.