GST mop-up, UPI, EVs show momentum; festival demand lights up economy
Key high frequency economic indicators on Friday showed a latent momentum in the economy. While passenger vehicles retail sales surged 20 per cent in October, consumption of auto and jet fuel rose between 0.8 and 9 per cent. In the same month, registration of e vehicles jumped 55 per cent while UPI transactions hit a new high with a growth of 45 per cent.
GST collection in October grew by 9 per cent to Rs. 1.87 lakh crore. This collection is related with goods consumed and services availed in September.
Though the collection growth in October was in single digit for a second successive month, it needs to be noted that the annual ritual of shradh was observed from September 17.
This means that there were just 16 auspicious days in September for fresh purchase, especially of consumer durables which account for a large chunk of GST collection.
Auto sales - According to industry sources, retail passenger vehicle sales for October would be between 4.80 to 4.90 lakh as against 3.9 lakh during the same month in 2023, showing a growth of 20 per cent. However, wholesales (dispatches to dealers) may seem flat because of inventory correction by all the automakers.
