Higher Tax Receipts, Rising Credit Growth Show Economy Is Improving, Says Arvind Subramanian

12/08/2015 12:22 PM IST | Updated 15/07/2016 8:25 AM IST
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NEW DELHI,INDIA MARCH 13: Chief Economic Adviser Arvind Subramanian at the India Today Conclave 2015.(Photo by Qamar Sibtain/India Today Group/Getty Images)

NEW DELHI — India's real credit growth has started picking up, the country's chief economic adviser, Arvind Subramanian, told reporters on Wednesday.

Subramanian also said higher indirect tax receipts suggest that the economy is improving. "These collections indicate that the underlying momentum in the economy continues to improve across all sectors," Chief Economic Advisor Arvind Subramanian told reporters here.

Indirect tax revenue jumped over 37 per cent to over Rs 2.1 lakh crore in April-July of the current fiscal on the back of higher excise duty mop-up.

The excise duty collection reflects hike in excise duty on diesel and petrol, withdrawal of exemptions for motor vehicles and the increase in service tax in June. It also includes customs collections data, which have also been helped by rupee depreciation of six per cent between April and July.

In April-July, the excise collections jumped 75.4 per cent to Rs 83,454 crore. While revenues from service tax rose 20.1 per cent to Rs 60,925 crore, those from Customs surged 21 per cent to Rs 66,076 crore, Subramanian said.

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