Upbeat notes
PremiumUncertainty levels may have dropped, but not enough to assure us that the current momentum will continue well past the festive season
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Key data sets released on Monday suggest an upbeat Indian economy. The manufacturing sector expanded for the fourth-straight month in India, with the purchasing managers’ index going up to 55.9 in October from 53.7 in September. The higher the reading above the 50 mark that indicates expansion, the stronger the activity captured by this index. In other good news, goods and services tax collections for October hit ₹1.3 trillion. Not only is this a 24% jump from a year ago, but it is also the second-highest ever. Encouragingly, export figures have been robust, too.
These numbers could be held as confirmation of our economy gaining strength as it recovers from the covid pandemic’s impact. Several other indicators have also struck notes of optimism. Yet, it is premature to assume that we have a lot less to worry about. Markets that cater to our well-off are doing much better than those serving the relatively disadvantaged, which points to an uneven revival. Also, uncertainty levels may have dropped, but not enough to assure us that the current momentum will continue well past the festive season. And then, there may be new climate challenges to confront, too.
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