Key data sets released on Monday suggest an upbeat Indian economy. The manufacturing sector in India expanded for the fourth straight month, with the Purchasing Managers’ Index rising to 55.9 in October from 53.7 in September. The higher the readings above 50, which indicate expansion, the stronger the activity captured by this index. In other good news, Goods and Services Tax collections hit for October ₹1.3 trillion. Not only is this 24% higher than a year ago, but it is also the second biggest jump ever. Encouragingly, export figures have also been strong.
These numbers can be considered as a confirmation of the strength of our economy as it recovers from the impact of the covid pandemic. Several other indicators have also indicated signs of optimism. Still, it is too early to assume that we have little to worry about. Markets that serve our well-being are doing much better than those that serve the relatively disadvantaged, pointing to an uneven revival. Further, the level of uncertainty may ease, but that is not enough to assure us that the current momentum will continue after the festive season. And then, there may also be new climate challenges to face.
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