Economy picked up steam in Oct on GST rejig, festival spends

Measures undertaken this yr pave way for virtuous cycle

- MANOJIT SAHA

Notwithstanding global headwinds, the Indian economy saw further momentum in October on the back of goods and services tax (GST) rate rationalisation and festival spending, as indicated by high-frequency indicators, the Reserve Bank of India's (RBI's) monthly State of the Economy report said.

"GST collections improved over the previous month, indicating a strong pickup in consumer demand," the report, authored by RBI staff with guidance from Deputy Governor Poonam Gupta, said.

The report said high-frequency indicators for October suggest a broader uptick in manufacturing activity and continued robust expansion in the services sector.

It clarified that the views expressed in the article are those of the authors and do not represent the views of the RBI.

"The month of October has seen a further pickup in demand conditions, pointing towards a resilient growth outlook," it said.