Latest economic indicators continue to underline the resilience of the Indian economy despite global uncertainties, citing GDP growth, manufacturing and services activity, industrial production, tax collections, capital expenditure and high-frequency indicators.According to the government, India’s economy grew 7.7% in FY 2025-26. Growth gathered further momentum in the final quarter, with real GDP accelerating to 7.8% in Q4 FY26, compared with 7.0% in the corresponding quarter of the previous year, driven by manufacturing, services, consumption and investment.The HSBC India Manufacturing PMI stood at 54.2 in June 2026, remaining above the 50-point mark for the 37th consecutive month, indicating expansion in manufacturing activity. The survey highlighted growth in output, new orders, employment and purchasing activity.
The HSBC India Services PMI Business Activity Index rose from 58.8 in April to 59.8 in May 2026, recording the strongest expansion since November 2025. The survey attributed the improvement to demand conditions, new client acquisitions and new business inflows. New orders expanded at the fastest pace in six months. Business activity was also supported by rising employment and a recovery in export demand.India’s Index of Industrial Production (IIP) increased from 4.9% in April to 5.1% in May 2026. The growth was led by a 5.5% expansion in manufacturing and 9.9% growth in electricity and gas supply. Within manufacturing, motor vehicles grew 14.5%, electrical equipment 20.8% and basic metals 4.6%. Capital goods output grew 12.9%.Capital expenditure in April-May 2026 stood at ₹2.51 lakh crore, compared to ₹2.21 lakh crore in April-May 2025. The increase was around ₹29,650 crore in the first two months of FY 2026-27. Indian Railways reportedly spent over ₹84,000 crore in April-May 2026, nearly 30% of its annual capital expenditure target. The focus is on safety upgrades, signalling, train protection systems, new lines, gauge conversion and doubling of lines. Roads, railways, telecom, defence and other infrastructure sectors are part of the public investment strategy.Gross tax revenue in April-May 2026 was higher than the previous year. Gross GST collections in June 2026 rose 13.9% to around ₹1.95 lakh crore, compared to ₹1.71 lakh crore in June 2025. Net direct tax collections grew 14.64% to ₹5.21 lakh crore in the current fiscal up to June 17, supported by corporate and non-corporate tax receipts.The government said fiscal discipline is expected to continue, despite pressures from global energy prices and the West Asia situation, with easing crude oil and fertiliser prices supporting the fiscal consolidation roadmap for FY 2026-27.E-way bill generation grew 10.9% year-on-year in May. Electricity demand growth rose from 3.5% in April to 11.2% in May. Port traffic growth improved from 2.4% in April to 6.6% in May.Automobile sales remained strong during April-June 2026. April saw retail sales of 26.11 lakh units. May sales stood at 25.31 lakh units, recording nearly 10% growth. June continued the trend, with demand across passenger vehicles, SUVs, EVs, two-wheelers and commercial vehicles.Rural automobile sales grew 7.8% in May, indicating continued growth in rural demand despite a high base.
Source link
