October PMI marks 8-month high, GST collection exceeds US$ 17 billion

The Manufacturing PMI was documented at 55.9 points in October and the Asia PMI grew to 50.6 points overall

November 2, 2021

During the period, entities catered to the increasing national and international demand through increased input purchases.

Rise in raw material prices, transportation costs and input costs facilitated an increase in sale prices.

Electronic components, fabric, oil, chemical, plastic and metal commodities saw an increase in input prices.

GST revenue exceeded US$ 17 billion in October with CGST at US$ 3.19 billion and SGST at US$ 4.06 billion.

As of October 2021, India’s Manufacturing Purchasing Mannager’s Index (PMI) grew to 55.9 points from 53.7 points in September. This growth marks an eight-month high and has been the highest reading since February 2021. The overall Asia PMI during this period grew to 50.6 points, the highest in four months. The period saw a rise in input purchases and inventory stock in order to meet the increase in demand both domestic and international. The increase in input prices is seen to have facilitated an increase in sale prices. Some of the commodities for which input prices saw a significant increase included electronic components, fabric, oil, chemicals, plastic and metals. The increased cost of raw materials coupled with rising transportation costs also appear to have contributed to this development.

October also saw the growth of Goods and Services Tax (GST) revenue exceeding US$ 17 billion (Rs 1.3 lakh crore), marking a 24% year-on-year increase and the highest amount of collection since April 2021. The increase in e-way bills is seen to have contributed greatly to this development although the import dependence for several commodities remained high. The breakdown of GST collection is as follows: CGST was at US$ 3.19 billion (Rs 23,861 crore) , SGST at US$ 4.06 billion (Rs 30,421 crore) and IGST at US$ 9 billion (Rs 67,361 crore).