INDIAN AND WORLD ECONOMY - WAY AHEAD

The Indian and world economy seems to be heading for good days with the stock markets rallying globally and the economic indicators also improving. The GST collection for the month of September has been Rs. 95400 crore which was 4 % higher than the last year of September collection. GST in October had a collection of Rs. 1 lakh crore which had crossed Rs. 1 lakh crore market previously in February 2020, which shows that economy is getting back on track aggressively. The Auto sector companies have also registered high sales during the Navratri time and as festive season continues there is optimism that the economy would see a rise in demand and consumption.

Globally the world economy is now settling down with the US election coming to an end as JEO BIDEN takes as 46^th President on 20^th January 2020. The stability in the USA would ensure that the world economy stabilities and issues like trade war, geo political tensions have a rational end.

The stock markets have been aggressively rallying with the FII pouring money with more than Rs. 61500 crore from January to 15^th November  2020. The news of the vaccine from Pfizer pharma company has sent the cheer waves globally with stock market globally rallying.  The sense of optimism is clearly visible as globally people are more confident that the world would soon come back to normalcy.

The Central Banks globally have been accommodative in their monetary policies and are trying to keep their interest rates at very low levels so that demand and consumption will pick up in coming months. RBI has also kept the interest rates at record low levels. India’s repo rate is at 4 %.