E-Way Bills Touch Second-Highest Level in Two Years, Indicating Economic Momentum
E-way bill generation by businesses in India reached its second-highest level in December 2024, marking a robust 17.6% year-on-year growth. According to data released by the GSTN, 112 million electronic permits were issued during the month, signalling increased movement of goods across the country.
This surge comes after a five-month low in November, which recorded 101.8 million E-way bills. The rise in December is expected to positively impact GST collections for January 2025, set to be announced on February 1.
E-way bills are mandatory for transporting goods worth over Rs 50,000, making them a leading indicator of demand and supply trends. An increase in these permits often reflects stronger economic activity, which subsequently influences macroeconomic indicators.
Tax experts have highlighted that the December growth aligns with higher consumption and manufacturing activity. "The sequential rise in E-way bill generation is a positive signal of higher consumption during the month. This should translate into stronger GST collections for January," said one expert.
Another expert pointed out the broader economic implications: "The increase in E-way bills indicates a rise in manufacturing activity, signalling economic recovery. With three months left in the financial year, this growth momentum could help put GDP growth back on track."
