Saturday, October 23, 2021

Economy on normalcy path

Direct tax collections are up and indicate a hefty recovery in the economy. If the pandemic remains in check, Indian economy can see an upsurge soon.

Editorial

The hefty tax collections in the first 6 months of the current financial year bode well for the country’s economic recovery.

Although, the financial performance of the country is not yet what it should have been, things are indeed looking brighter with time.

The 47% tax growth in direct tax collections brings good signs of recovery for the nation’s economy and rekindles the hope that things would soon come back to normal.

The direct tax collections have reached Rs. 6.45 lakh crore and this is much better than the data of 2019-20 before the onset of the pandemic.

GST collections have been consistently improving showing a strong recovery in the economy.

The country has seen upward movement in direct tax collections in most of the sectors. Only telecom and aviation sectors bucked the trend. However, India has done extremely well on the digitisation of payments.

The fact that in India, digital payments have grown by 30% is enough to warm the cockles of economists’ hearts.

The numbers show that India is way ahead of US and China, the two largest economies, in terms of digital transactions.

Although, the value of transactions in India have been traditionally low, the number of transactions has seen astronomical growth.

The numbers so far have been good showing an indication that Indian economy will soon see an upsurge.

If the pandemic remains in check, the festive season is likely to bring cheers to Indian businesses.

Let us keep our fingers crossed.

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