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Economic Times
4 days ago
- Business
- Economic Times
May GST mopup up by 16.4%; shows FY26 off to a flying start
India's GST collections soared 16.4% to ₹2.01 lakh crore in May, signaling strong economic momentum at the start of FY26. This robust growth, supported by increased UPI transactions and auto sales, provides significant fiscal headroom for the government. Experts suggest that continued strong GST performance could pave the way for rate rationalization. Tired of too many ads? Remove Ads Revenues from imports up 25% Tired of too many ads? Remove Ads Goods and services tax collections surged 16.4% in May to ₹2.01 lakh crore from a year earlier, signaling robust demand at the start of the fiscal year after a strong close to FY25, data released on Sunday high-frequency monthly data also showed strong economic momentum in May. Unified Payments Interface transactions rose 33% year-on-year in the month to 17.8 billion transactions. Mahindra & Mahindra, the country's second-largest automaker, reported 21% higher sales in May, though overall industry sales are likely to be flat on the high base of last economy grew at a better-than-expected 7.4% in the March quarter from a year ago, as per data released May 30. Previously released numbers showed HSBC Flash India Composite Output Index for May at 61.2 against 59.7 in April, indicating expansion in private sector activity.'The (GST collection) figures reported for May 2025, which relate to transactions in the first month of FY26, at ₹2.01 lakh crore would provide significant fiscal headroom for the government,' said MS Mani, partner, indirect taxes, Deloitte India. 'These figures are also in line with the recent GDP growth estimates, which indicate a robust consumption pattern across months.'This is the second time in a row GST has exceeded ₹2 lakh crore. The average monthly gross GST collection in FY25 was ₹1.84 lakh be sure, the May figure is down from the high of ₹2.38 lakh crore in April, but analysts said collections in that month are traditionally higher. 'While last month's spike was expected with year-end reconciliations, the consistency this month along with a 16% plus year-on-year growth points to strong underlying momentum and a recovery that is clearly taking hold,' said Abhishek Jain, indirect tax head and partner, revenues from imports are 25% higher despite tariff headwinds, indicating strength in the domestic GST collections stood at ₹1.49 lakh crore, up 13.7%. After accounting for refunds, net GST revenue for May was ₹1.73 lakh crore, 20% up from last export refunds were down 36.25%. 'This suggests that April's increased exports were primarily on account of companies building their stocks owing to the tariff threat,' said Saurabh Agarwal, tax partner, the large states, Maharashtra, West Bengal, Karnataka and Tamil Nadu reported a 17–25% rise while Gujarat and Telangana clocked a 4–6% increase.'The wide variations in the growth of GST collections across states require a thorough analysis across the sectors that are important in each state,' Mani also said consistent robust GST collections make a case for rate rationalisation. 'If the growth continues in this range for next couple of months, it might provide the cushion for the government to look at rate rationalisation on which a lot of work has already been done,' said Pratik Jain, partner, May, gross central GST revenue stood at ₹35,434 crore, state GST revenue at ₹43,902 crore and integrated GST at ₹1.09 lakh crore. Revenue from cess was ₹12,879 crore.
Hans India
23-05-2025
- Business
- Hans India
Composite PMI rises to 13-mth high in May
New Delhi: The HSBC Flash India Composite Output Index – which measures the month-on-month change in the combined output of India's manufacturing and service sectors – on Thursday reported robust business activity in May in the country, climbing to a 13-month high of 61.2, compared with 59.7 in the previous month. At 61.2 in May, the HSBC Index showcased a sharp rate of expansion in private sector activity. 'The increase was the most pronounced since April 2024. There was a mild loss of growth momentum in the manufacturing industry but service providers reported the fastest rise in output in 14 months,' according to a HSBC Flash India PMI note. The HSBC Flash India Manufacturing PMI was little changed from April's reading of 58.2. At 58.3 in May, the latest figure was consistent with a sharp improvement in the health of the sector growth in India moved up a gear during May, boosted by an acceleration in the service economy. Strong influxes of new business, both from domestic and international markets, induced quicker expansions in business activity and employment. There was also an improvement in business confidence for the first time since January, said the HSBC. 'India's flash PMI indicates another month of strong economic performance. Growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April,' said Pranjul Bhandari, Chief India Economist at HSBC.
Time of India
22-05-2025
- Business
- Time of India
Private sector activity in May at 13-month high
India's private sector activity surged to a 13-month high of 61.2 in May from 59.7 in April, driven by an acceleration in services, according to a private survey released on Thursday. The HSBC Flash India Composite Output Index was 60.5 in May 2024. The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services indices. "India's flash PMI indicates another month of strong economic performance," said Pranjul Bhandari, chief India economist at HSBC. The increase in service sector output was the fastest in 14 months, while the manufacturing sector recorded the slowest increase in three months. Survey respondents attributed growth at the composite level to buoyant demand, investment in technology and expanded capacities. However, some firms noted that price pressures, competition and the India-Pakistan conflict negatively impacted operations. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas In Dubai | Search Ads Get Rates On April 2, the US announced reciprocal tariffs on various countries, imposing a 26% tariff on Indian imports. While US announced a 90-day pause until July 9, a baseline tariff of 10% remains in effect. While manufacturing sector was negatively hit across Asia due to trade uncertainties, domestic-oriented economies like India were outliers. New orders also picked up, with support from international demand. The private sector recorded the fastest increase in exports in a year, said the survey. Live Events "Growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April," said Bhandari.
Business Standard
22-05-2025
- Business
- Business Standard
India's private sector PMI grows to 61.2 in May
Private sector growth in India moved up a gear during May, boosted by an acceleration in the service economy. Strong influxes of new business, both from domestic and international markets, induced quicker expansions in business activity and employment. There was also an improvement in business confidence for the first time since January. In terms of inflation, the HSBC flash PMI data revealed the fastest increases in input costs and output charges since late 2024. At 61.2 in May, up from 59.7 in April, the HSBC Flash India Composite Output Index a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors showcased a sharp rate of expansion in private sector activity. The increase was the most pronounced since April 2024. There was a mild loss of growth momentum in the manufacturing industry but service providers reported the fastest rise in output in 14 months. The HSBC Flash India Manufacturing PMI was littlechanged from April's reading of 58.2. At 58.3 in May, the latest figure was consistent with a sharp improvement in the health of the sector. While goods producers indicated the slowest increase in output for three months during May, service providers reported the fastest rise since March 2024. Order books were supported by strengthening international demand for Indian goods and services, with the private sector registering the fastest rate of increase in exports in a year. Underlying data indicated that ongoing job creation enabled companies to stay on top of their workloads in May. Prices charged for Indian goods and services rose at a quicker rate in May, with the aggregate rate of inflation at a six-month high. There was an upgrade in expectations among private sector firms in May, after confidence had slipped to an eight month low in April.
Mint
22-05-2025
- Business
- Mint
India's private sector growth accelerates in May, led by services: HSBC Flash PMI
New Delhi: India's private sector gained momentum in May, led by a sharp acceleration in services activity, as strong demand from both domestic and international markets drove business expansion and hiring, according to the HSBC Flash India PMI survey released Thursday. Compiled by S&P Global, the survey also signalled a revival in business confidence, the first uptick since January. The HSBC Flash India Composite Output Index, which captures activity across both manufacturing and services, is estimated to have risen to 61.2 in May from 59.7 in April, indicating robust expansion. A reading above 50 denotes growth, and the index has now remained in expansion territory for over three years. 'The increase was the most pronounced since April 2024,' the report said. While manufacturing showed a slight slowdown in growth, the services sector posted its fastest output rise in 14 months, the survey noted. Based on responses from roughly 400 manufacturers and 400 service providers, the flash PMI offers an early estimate ahead of final data, which will be released early next month. The HSBC Flash India Manufacturing PMI edged up to 58.3 in May from 58.2 in April, signalling continued strength, albeit at a stable pace. In contrast, the Services PMI Business Activity Index surged to 61.2 from 58.7, while the Manufacturing Output Index dipped marginally to 61.4 from April's 61.9. 'While goods producers indicated the slowest increase in output in three months, service providers reported the fastest rise since March 2024,' the survey said. 'At the composite level, the latest upturn was the quickest in just over a year. Surveyed firms attributed the momentum to buoyant demand, investments in technology, and capacity expansion.' India's ambition to become a $10 trillion economy over the next decade is being propelled by growth in manufacturing, particularly in sectors such as semiconductors, electronics, electric vehicles, renewables, and defence. To support this goal, the government has ramped up capital investment in infrastructure, job creation, and industrial development. "India's flash PMI indicates another month of strong economic performance. Growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April," said Pranjul Bhandari, Chief India Economist at HSBC. 'Notably, there is a firm pickup in employment, especially in the services sector, suggesting healthy job creation is accompanying the expansion of India's manufacturing and services sectors,' she added.
