- The IHS Markit India Manufacturing PMI rose to 56.8 in September from 52 in August.
- PMI rose to the highest in eight-and-half years in September.
- GST collections in September crossed last year’s levels.
- Other measures such as e-way bills, railway freight loading, highway toll collections, power demand and exports also pointed to an economy on the mend after a record contraction in the June quarter.
- Power demand was about 4.8% higher on a daily basis as on September 30 compared to a month ago.
- As many as 29 million sought work under the Mahatma Gandhi National Rural Employment Guarantee Scheme as of September 26, the lowest since the curbs began to be eased in May and suggesting more people were finding jobs in the cities.
- More than 57.4 million eway bills were generated for the month, the highest ever, up from 49.4 million in August.
- Freight loading in September stood at 102.13 million tonnes against 94.63 million tonnes in August.
- E-way bills are mandatory for inter-state transportation of goods above Rs ____ in value?
Demand & Liquidity
- SBI and Hindustan Unilever Ltd said consumer demand and liquidity have been improving over sequential quarters.
- The country’s biggest bank and its largest consumer goods maker, however, said people are still cautious about spending and wary of stepping out, which could impact discretionary categories at a time when most companies are pinning their hopes on the festive season.
- While a large part of the economy has opened up, the fear has not gone away from people’s mindset.
- HUL, regarded as a proxy for consumer sentiment with its presence in a range of daily consumption items such as soaps, shampoos and food, said the state of the Indian economy and underlying demand will become much clearer by the December quarter.
- SBI partnered HUL to provide digital payment and financing solutions for retailers and distributors through UPI-based payment solutions and PoS (point-of-sale) terminals.
- Under the tie-up, the bank will also offer overdraft and financing to millions of retailers where HUL has direct coverage and bring them into the formal economy since a bulk of the general trade and kirana stores operate in an unorganised market.
- India’s biggest car and two-wheeler makers posted their best on-year vehicle sales growth in over two years as demand recovered sharply on the back of a surge in rural areas and the growing need for personal transport in cities.
- An estimated 293,000 passenger vehicles were sold in September, a 31% jump over the same month in 2019 and 25% more than August 2020.
- Maruti Suzuki, which accounts for every second car sold in India, led the way with a 33% rise in local sales to 150,040.
- Tata Motors and Kia posted the highest growth of 162% and 141%, respectively, due to new models and a relatively lower base from last year.
- Kia sold 9,266 Sonets in its first month of sale.
- Sustained demand for hatchbacks from first-time buyers and the novelty factor of SUVs Creta and Venue helped Hyundai Motor register a growth of 23%.
- Hyundai despatches were over 50,000 units in September.
- Tractor sales jumped and two–wheeler sales also grew strongly, data showed.
Indian App Store
- The central government will consider requests from technology entrepreneurs to launch an Indian digital application store.
- India already has an app store for governance-centric apps, which can be scaled up to begin with.
- In addition, there is a need to also introduce policies requiring handset manufacturers to preload alternative app stores alongside popular offerings like Google Play.
- Global experts are of the view that India is well placed to break the dominance of global technology giants in its digital app ecosystem.
- Government officials said the issue (of overseas tech giants dominating India’s digital app sector) emerges from the fact that Google’s Android operating system has a “98% market share” in the smartphone segment in India whereas it’s much lower in other countries including the US.
CAG on IBC
- The Insolvency and Bankruptcy Code (IBC) has nudged the behaviours of debtors and creditors and this has resulted in substantial recoveries for creditors outside the framework of the code.
- “With the code in place, non-repayment of loan is no more an option and ownership of the firm is no more a divine right and equity is no more the only route to own a firm,” Murmu said.
- The IBC was also reducing the incidence of default and helping to resolve the non-performing assets crisis affecting the banking system.
- It also improves corporate governance by deterring fraudulent and extortionate transactions on the part of management, Murmu said.