Fiscal policy must play a bigger role to keep our economy going
The spectre of demand destruction hasn’t gone and monetary tools may not spur consumption much
Diwali is just around the corner. The most recent economic data is heartening—even though India is not out of the woods as yet. Here are some straws in the wind. Collections of goods and services tax (GST) in October crossed the ₹1 trillion mark for the first time since the pandemic struck; and it was more than thrice the low point of April. The strong rise in integrated GST component—levied on interstate trade—suggests that national supply chains are recovering. The GST collected in any particular month is an indicator of economic activity in the previous month.