The number of e-way bills generated for the transportation of goods across India reached a record high of 11.7 crore in October. This represents a 17% increase compared to October of the previous year, according to data from the Goods and Services Tax Network (GSTN). The rise in e-way bills is a clear sign of increased economic activity as India’s manufacturing sector accelerates to meet rising demand, especially during the festive season.
Surge in Manufacturing and Demand
The jump in e-way bill generation reflects strong growth in India’s manufacturing sector. According to the HSBC survey, India’s manufacturing growth was stronger in October, driven by higher new orders and a rise in international sales. This increase in orders has led to more jobs being created, further boosting the economy.
India’s manufacturers have seen stronger demand for goods, with companies reporting a faster increase in order book volumes. This growth is the most significant in nearly 20 years, with anecdotal evidence showing that new product introductions and effective marketing strategies are helping improve sales performance.
Growth in Services Sector and Jobs
The rise in e-way bill generation is also linked to increased activity in India’s services sector. The HSBC PMI survey showed that the Indian services sector expanded strongly in October, with output and consumer demand rising. Job creation also reached its highest level in 26 months, further contributing to the country’s economic growth.
The increase in e-way bills has a direct impact on tax revenue, with higher taxes collected due to the surge in economic activity. India’s Goods and Services Tax (GST) collections rose to Rs 1.87 lakh crore in October, marking the second-highest revenue month since GST was introduced in 2017. This 8.9% year-on-year increase provides the government with more resources to invest in large infrastructure projects and social welfare programs aimed at uplifting the poor.
The growth in e-way bills and tax revenue signals strong economic performance in India. As the manufacturing and services sectors continue to thrive, the country’s economic growth looks promising, particularly during the festive season.
