The New Year kicked off with the long-awaited approval of the Covid-19 vaccine and the launch of vaccination drives in various countries.
“This strengthens optimism in terms of both health and economy, despite the continued surge in global cases and the potential challenges of mutant strains,” said the December monthly economic review. It was.
“So far, we have reduced weekly / daily infections, increased recovery rates (currently around 95%), and succeeded in bending the Covid curve, one of the lowest case fatality rates in the world.” Stated.
However, he said that the downside risk of fatigue due to the epidemic of UK varieties and social distance guidelines remains, with a focus on continuous observation of “Covid-appropriate” behavior with close attention and surveillance. Added that it is necessary to put.
Sharing some high-frequency data improvements, the report reports that the sustained surge in commercial and industrial activity, the continued growth of PMI manufacturing, the electricity demand, and the sustained growth of generated E-way invoices. He said it was further backed by improvements and higher highway toll collections than before-Covid level.
The monthly GST collection reached a record level in December.
GST’s total revenue collected in December 2020 was Rs 1,15,174, the highest since the introduction of the Goods and Services Tax from 1 July 2017.
According to the report, the average daily net absorption by the RBI in December increased from the previous month, but the liquidity situation as the accumulation of dollars due to the increase in currencies has increased the liquidity of the banking system. Continues to be good.
Credit growth improved sharply, reflected in significant non-food credit growth and overall credit growth, thanks to the Emergency Credit Line Guarantee Scheme (ECLGS), which continues to support strong credit payments to MSME. did. Borrower based on ECLGS 1.0.
Expanding ECLGS to 26 stress sectors will further boost MSME’s credit growth. Credit growth is further supported by the sharp rise in banks’ incremental credit deposit ratios, according to the report.