Festivals light up car sales, GST collection

PV sales climb new peak for 3rd straight month; GST mop-up at ₹1.72 trn

- DEEPAK PATEL

Helped by strong festival-season demand and momentum in the economy, domestic passenger vehicle (PV) sales reached a new peak for a third consecutive month in October, while the goods and services tax (GST) collection surged to the second-highest ever. But there were some concerns regarding manufacturing activity and joblessness, especially in rural India.

While the monthly PV wholesale number at 391,472 units in October, up 16.3 per cent year-on-year (Y-o-Y), topped the record of 363,733 units set in September, the GST mop-up at Rs 1.72 trillion, an increase of 13 per cent Y-o-Y, lagged only the high of Rs 1.87 trillion reached in April this year. 

UPI transactions also saw their highest ever value in October at Rs 17.16 trillion, up 9 per cent from Rs 15.8 trillion in September. In volume terms, too, they touched a new high at 11.41 billion, up 8 per cent versus 10.56 billion in September.

On the flip side, India’s manufacturing activity in October slipped to the lowest in eight months, said a survey by credit rating agency S&P Global. 

The Manufacturing Purchasing Managers’ Index (PMI) fell to 55.5 in October versus 57.5 in September. It is the lowest since March when the PMI was 56.4. 

According to S&P Global, there was a slower increase in total new orders, production, exports, buying levels, and stocks of purchases. The hiring activity and business confidence, too, slipped to a five-month low.