oppn parties The Economy Is On Track For 7% Growth
OPINIONS : Strongly Expressed

February 04, 2023

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News Snippets

  • The Centre today said that there were no systemic issues linked to financial markets invloved in the crash of Adani group shares and market regulators were capable of doing what was needed. It said there is no need for the government to step in
  • Nearly 96% of the candidates appeared for the JEE(Mains) exam in the January session, making it the all-time high attendance
  • The Union budget has provided that input tax credit will not be available to companies on products and services they procure to fulfill their CSR obligations
  • Bombay HC rules that an FIR can be quashed even if a person is convicted in a trial court if an appeal in the case is pending before a higher court
  • Supreme Court thrwos out PIL seeking one candidate, one seat in elections, says it is the call of the legislature
  • Law minister Kiren Rijiju said that the government remained committed to diversity in selection of judges
  • Mamata Banerjee alleges that due to government pressure on public financial institutions to invest in Adani group, deposits in LIC and banks have become vulnerable
  • Kerala journalist Siddique Kappan was finally released from Lucknow jail, 28 months after his arrest by UP police in a UAPA case and more than 20 days after he was granted bail by Allahabad HC
  • A 65-year-old woman who was alone at home was hit on the head with a hammer and robbed in Kolkata
  • Enforcement Directorate charges that Arvind Kejriwal connived with Delhi liquor scam accused, court takes congnizance of charge sheet
  • Opposition stalls Parliament, demand probe into the Adani controversy. Says government forced LIC, SBI and other public institutions to invest in Adani group companies
  • RBI seeks information from banks about their exposure to the Adani group
  • BSE and NSE initiate additional risk-containment measures to counter the rout in Adani shares
  • Adani group shares free fall continues unabated: led by Adani Enterprises and Adani Total Gas,group companies lose 45.7% marekt capitalization in just 6 trading sessions
  • Stock market insulates itself from fall in Adani group shares. Sensex ends in green after another volatile session while Nifty ends in red but flat: Sensex gains 224 points to 59932 and Nifty loses 5 points to 17610
Free fall in Adani group shares continues unabated, Opposition parties demand a probe by a joint parliamentary committee or a Supreme Court-appointed panel
oppn parties
The Economy Is On Track For 7% Growth

By A Special Correspondent
First publised on 2022-11-02 07:58:22

The news on the economic front is reassuring and suggests that growth will be on track at around 7%. GST collections in October were Rs 1,51,718 lakh crore, the second highest ever, although growth in collection, at 16.8% Y-O-Y, has slowed down due to normalizing base. But with robust e-way bill generation due to the festive season in October, collections are expected to be high in November too.

The manufacturing sector also showed healthy uptick in activity. The Purchase Manager's Index, which stood at 55.1 in September, jumped to 55.3 in October as new orders filled the books. Job creation was also at its fastest pace in nearly three years. These are good signs as growth in manufacturing and agriculture related activities, along with construction and services can reduce unemployment rapidly.

Other indicators were also positive. Railway freight earning rose 17% and passenger bookings were also healthy. Fuel sales recorded the sharpest volume growth at 12% since June, mainly due to the festive season. Car sales were also robust but two-wheeler sales were subdued. UPI payments rose by 7.7% in October. The stock exchanges also reflected this with the Sensex reclaiming 61000 after 10 months on November 1.

But September and October, being festive months, always see a sharp rise in demand for goods and services. Yet, the Y-O-Y growth is promising. Economic activity is picking up fast and with 5 months still left in this financial year, most targets, including the fiscal deficit target, are likely to be met. Government finances are healthy despite a huge shortfall in divestment due to rising direct tax collections. But food and subsidizer subsidies are taking an increasing toll. However, if crude prices remain stable, if exports do not suffer due to feared recession in developed countries and if the Ukraine conflict does not escalate further throwing supply chains out of gear once more, India can hope to achieve excellent GDP growth this financial year.oooooHoweveroweverpoowever, oweveH