India’s consumption and economic activity have shown resilience in the initial period of FY27, driven by robust domestic demand. Government sources revealed a 27% increase in taxable supply of goods and a 22.2% expansion in services in April. Goods sectors witnessed a significant growth of 26.9% year-on-year, reaching Rs 40.10 lakh crore, with all 27 commodity groups experiencing positive growth.
The data from April, based on GST returns filed in May, indicated a widespread growth trend across various sectors including agriculture, manufacturing, chemicals, metals, electronics, automobiles, and consumer goods. Sectors like gold, precious metals, electric machinery, electronic appliances, telecom equipment, and passenger vehicles displayed notable growth rates. Real estate services saw a remarkable 50% surge, while transport, postal, courier services, and accommodation, food, and beverage services also recorded positive growth.
The strong performance in both goods and services sectors underscores the broad-based nature of domestic demand growth, indicating a healthy economic momentum across multiple industries. Import-related tax collections, particularly IGST on imports, saw a more than 20% increase in May. Notably, electronic components, including processing units and memory chips, emerged as key contributors to the growth in import-related tax collections.
