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LATEST NEWS UPDATES | What Vahan data tells us about India’s economic recovery -howindialives

What Vahan data tells us about India’s economic recovery -howindialives

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published Published on Sep 1, 2020   modified Modified on Sep 2, 2020

-Livemint.com

Barring sales of second-hand vehicles and new tractors, the auto industry remains badly hit. Vehicles used for transporting goods are among the worst-hit segments

Will the Indian economy recover quickly from the June quarter lows? That’s the trillion dollar question facing investors today. One sector that offers vital clues in this regard is the automobile sector. Vehicle sales are among the key lead indicators of consumption and an important source of taxation for governments. They also happen to be among the largest providers of factory jobs in the organized manufacturing sector. Finally, the state of goods movement on our roads provides a good idea of how well the country’s economic engines are moving.

Right now, in an economy recovering from a vicious virus, most wheels of the automobile sector have begun moving, but at a very slow pace. Barring sales of second-hand vehicles and sales of new tractors, the momentum is weak. On sales, tax revenues, and movement, the auto sector is still far below pre-pandemic levels, shows monthly data from a government dashboard called Vahan.

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Livemint.com, 1 September, 2020, https://www.livemint.com/news/india/what-vahan-data-tells-us-about-india-s-economic-recovery-11598945046156.html


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