The latest economic indicators from the Union government highlight the strength of the Indian economy despite global challenges. Strong GDP growth, expanding manufacturing and services sectors, record vehicle sales, healthy GST collections, and robust exports all point to a resilient domestic demand and investment climate. India’s economy grew by 7.7% in FY 2025-26, maintaining its position as the world’s fastest-growing major economy.
Growth momentum increased in the final quarter, with real GDP reaching 7.8% in Q4 FY26, driven by strong performances in manufacturing, services, consumption, and investment. The HSBC India Manufacturing PMI stood at 54.2 in June 2026, indicating sustained expansion for the 37th consecutive month. The survey also noted growth in output, new orders, employment, and purchasing activity, reflecting positive business confidence and strong domestic demand.
India’s Index of Industrial Production (IIP) rose to a five-month high of 5.1% in May 2026, led by manufacturing and electricity sectors. Capital goods output grew by 12.9%, showcasing continued investment momentum and industrial capacity strengthening. The government’s capital expenditure in April-May 2026 reached Rs 2.51 lakh crore, a significant increase from the previous year, focusing on core infrastructure sectors like roads, railways, and telecom.
Tax collections remained robust despite global uncertainties, with Gross GST collection rising 13.9% to around Rs 1.95 lakh crore in June 2026. Net direct tax collections also increased by 14.64% to Rs 5.21 lakh crore in the current fiscal year. Trade and logistics activities remained strong, with e-way bill generation growing by 10.9% year-on-year in May, reflecting sustained economic activity. Automobile sales were impressive, with April witnessing the highest-ever retail sales of 26.11 lakh units, indicating strong demand in both urban and rural markets.
