India’s supply chain activity hit new highs in the month of October, as shown by data on cargo movement and e-invoice generation, a key indicator of economic health. According to data from the GST Network (GSTN), the generation of electronic transport invoices reached 117.25 million in October, 17% more than last year.
This growth was due to increased demand and manufacturing production during the festive season, when commercial and retail activities recover. The festive season sees important festivals like Raksha Bandhan, Ganesh Chaturthi, Onam, Navratri, Dussehra and Diwali, which boost business.
This increase in e-way bills means there has also been a significant increase in e-permits needed to ship goods between states. This increase is significantly higher than September figures and reflects the increasing pace of business.
At the end of the financial year, companies often have to increase the number of electronic invoices to clear inventory and meet their targets, which is indicative of increased revenue.
Electronic invoice activity is an important economic indicator that reflects general economic trends. Normally, when cargo volume increases, it indicates that economic output is also increasing.
India’s Goods and Services Tax (GST) collection reached Rs 1.87 trillion in October due to the festive season, the second highest monthly revenue since the introduction of the GST system (2017). This was 8.9% more than the collection of Rp1.73 trillion in September.
“Electronic collections have been very good in recent months and reflect India’s economic growth and strength,” said Manoranjan Sharma, chief economist at Infomerics Ratings. “This increase makes it clear that technical failures and leaks are now history.”
