Even after three months of unlocking; Know the status of India’s economy from four indicators
No improvement in GST collection in three months of unlock
Increase in income and electricity consumption from railway freight
The economy was brought to a standstill due to the nationwide lockdown due to coronavirus. As soon as the unlock started, activities gradually increased. In order to understand how India’s economy has gained momentum in these three months, the research team of State Bank of India has produced a report.
SBI Research report says that in the five months of April to August, the GDP of 24 states of the country has lost Rs 41 lakh crore. The GST collection has decreased compared to last year. Deposits in the savings account increased, but deposits in the current account have not reached the level of the previous year.
Power consumption increases as manufacturing speeds up
Manufacturing has also gained momentum as demand has increased. This is known by the fact that electricity consumption is increasing. Factories were closed in May, due to which power generation was down by 21%.
The demand for electricity has been increasing every month since June. This means that the manufacturing sector is on track. But, the second wave of Corona’s growing case is also troubling. Power consumption in Uttar Pradesh increased from June to July, but decreased in August.
Similarly, power consumption in Maharashtra was lower in July and August than in June. The situation was more or less the same in Gujarat, Tamil Nadu and Punjab. Overall demand has increased, suggesting that there has been a stir in small and medium industries.
Freight growth, but lower than last year
The railways’ earnings from freight have been decreasing since last year. Freight income in June this year was 17% lower as compared to June-2019. However, this difference came down to 10% in July and 1.8% in August.
Deposits in current account decreased, savings increased
Deposits in savings account have increased, but the current account of the traders is still getting less money in the current account. As of June 2019, deposits in savings account declined by 91 thousand crores this year. The gap ended in July and 45 thousand crore rupees was accumulated. In August also, 29 thousand crores was deposited more than the previous year.
At the same time, if we look at the deposit in the current account, in June 2019 it was about 65 thousand crores more. But, in July there were deposits of Rs 3,650 crore and August 23,280 crore less.
GST collection is continuously decreasing
GST collection was lower by Rs 8,420 crore as compared to June last year. In July, the gap widened and in August the gap was less by Rs 11,760 crore.