economy

E-way bill data for Dec points to rebound

E-way bill data for Dec points to rebound

NEW DELHI : E-way bill generation gathered pace for inter- and intra-state movement of goods last month after witnessing a dip in November, reflecting a sharp recovery in demand and manufacturing activity. According to goods and services tax network (GSTN) data, 71.6 million e-way bills were generated in December, compared with 61.1 million in November. E-way bill is compulsory for transporting goods worth ₹50,000 or more, and is a lead indicator, signalling a pick up in economic activity. The number of e-way bills generated last month is close to the festive month of October  (73.5 million), which led to the second highest GST revenue collections of ₹1.31 trillion since the roll out in 2017. According to an earlier report, daily average generation of e-way bills stood at 2.2 million in the first 19 days of December, recovering from 2 million in November after a robust 2.37 million e-way bills generated in October. The sharp rise in e-way bill numbers is also supported by other indicators, such as the purchase manager’s index, and exports data, signalling robust economic activity in December. According to IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) released on Monday, India’s manufacturing sector continued to grow in both production and new orders last month, but at the slowest pace since September, while cost pressures continued to inch up. Manufacturing PMI at 55.5 in December showed robust improvement in overall operating conditions, Mint reported on Monday. Indian exports, too, showed robust growth in December with merchandise exports at $37.29 billion, the highest ever monthly shipments, up 37% from $27.22 billion in December 2020, and an increase of 37.5% over $27.11 billion in December 2019. Apart from the rebound  in economic activity, a tech-enabled crackdown on fake invoice dealers and strict enforcement of compliance requirements also resulted in higher GST revenue receipts. The finance ministry said that besides economic recovery, anti-evasion activities, especially action against fake billers, have been contributing to higher GST collections and the positive trend is expected to continue in the last quarter of 2021-22 as well. A key concern among policymakers is the extent of disruption a third wave of the coronavirus pandemic could pose on economic activities.  According to a health ministry update, India has more than  171,000 active cases and reported over 482,000 deaths since the outbreak of the pandemic. Policymakers expect the government to support infrastructure investments, help boost manufacturing activities through production-linked incentives and improve capacity utilisation in the industry to support economic growth as the risks of a third wave of the pandemic is visible with covid cases rising at a fast clip over the last few days across India. Download.

economy 2022-01-05 Livemint