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<strong>India&rsquo;s economy is on the mend in the post Covid phase.</strong></p>
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<strong>According to data, credit growth in the first two months of the financial year has been robust, something that will provide a huge relief to the country&rsquo;s policymakers. The goods and services tax (GST) collections for May at Rs 1,40,885 crore also will be a sentiment booster. It is a 44 per cent growth on a year-on-year basis.</strong></p>
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The finance ministry said that this is the fourth month that GST collections crossed the Rs 1.40 lakh crore mark since the inception of the tax regime.</p>
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In the previous financial year, around 2000 listed companies reported 29 per cent growth in top line and 52 per cent growth in profit after tax (PAT) as compared to 2019-20.</p>
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Most importantly the construction sectors including cement, steel reported impressive growth numbers in both revenue as well as PAT, the SBI report added.</p>
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However, measures need to be continuously monitored and tweaked to cool off impact from high global crude oil prices. Besides, all eyes are on the Reserve Bank of India&rsquo;s monetary policy. Though the central bank has already indicated that interest rates will be hiked subsequently, &ldquo;we expect RBI also to be supportive of growth and hike repo rates gradually, but mostly frontload it in June and August policy,&rdquo; the State Bank of India said in its report.</p>
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The Centre has already slashed domestic fuel prices and made imports of key raw materials cheaper.</p>
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The SBI also said that the inflation rate is likely to remain between 6.5- 6.7 per cent in the current financial year &ldquo;on the back of excise rate cuts by the government. Independent forecasts reveal that oil prices could climb further before declining, but it might still hold up at current levels for a longer period of time, it said.</p>
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India&rsquo;s growth rate in 2021-22 stood at 8.7 per cent — higher than China&rsquo;s 8.1 per cent. But China&rsquo;s growth rate this year is expected to be severely dented by the stringent lockdown imposed for about two months to contain the spread of the infections.</p>
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&ldquo;It is also important to ensure there is no other Covid 19 wave hitting us. That is critical as even a partial shutdown or restriction can dent economic growth,&rdquo; a senior official with a ratings agency told India Narrative.</p>
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<strong>Also read: <a href="https://www.indianarrative.com/economy-news/after-drop-in-petrol-and-diesel-prices-will-gst-and-direct-tax-collections-be-enough-to-make-up-for-the-loss-to-the-exchequer-172847.html">After drop in petrol and diesel prices, will GST and direct tax collections be enough to make up for the loss to the exchequer?</a></strong></p>
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<strong><a href="https://www.indianarrative.com/economy-news/india-s-exports-sector-registers-robust-growth-despite-geopolitical-uncertainties-170760.html">India&#39;s exports sector registers robust growth despite geopolitical uncertainties</a></strong></p>
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