In the April-June 2025 quarter, GDP grew by 7.8%, and GST collections reached ₹1.67 lakh crore in August. The manufacturing and service sectors hit record highs, while auto exports also saw an acceleration. This helped strengthen India's economy and mitigate tariff-related concerns.
US Tariff: Over the past week, India has presented five significant economic indicators, effectively refuting the claims of its detractors. In the April-June 2025 quarter, GDP grew by 7.8%. Gross GST collections reached ₹1.86 lakh crore and net collections stood at ₹1.67 lakh crore in August. The manufacturing sector reached a 17-year high, the service sector touched a 15-year peak, and auto exports registered an increase. These figures highlight the robustness of the Indian economy and its competitive position globally.
GDP Growth Better Than Expected
India's GDP recorded a growth of 7.8 percent in the April-June quarter of the current financial year. This figure surpasses expert estimates and is the highest in the five quarters preceding the US tariffs. The robust performance of the agriculture sector, along with growth in trade, hotels, financial services, and real estate sectors, contributed to this elevated figure. China's GDP growth during the same period was only 5.2 percent, further strengthening India's position.
The Reserve Bank of India had projected a real GDP growth rate of 6.5 percent for this fiscal year. The actual figures exceeding this projection demonstrate the strength of the country's economic policies.
Consistent Increase in GST Collection
In August 2025, gross GST collections increased by 6.5 percent to ₹1.86 lakh crore. Last year, during August, this figure was ₹1.75 lakh crore. In the same period, net GST revenue also rose to ₹1.67 lakh crore, indicating a year-on-year growth of 10.7 percent. These figures clearly show a strengthening of revenue collection for the Indian government and a robust economic health for the country.
Manufacturing Sector Sets a 17-Year Record
In August, India's manufacturing sector recorded its fastest growth in 17 years. The HSBC India Manufacturing Purchasing Managers' Index (PMI) rose to 59.3 in August from 59.1 in July. This was made possible by an increase in production capacity, healthy demand, and sustained growth in employment. This marked the 18th consecutive month of employment growth.
Service Sector at a 15-Year High
The growth rate of the country's service sector reached its highest level in 15 years in August. The HSBC India Services PMI Business Activity Index increased to 62.9 in August from 60.5 in July. The acceleration in new orders and output indicated that the service sector is also robust and expanding. Price increases boosted demand and facilitated a sharp rise in output charges.
Growth in Auto Exports
The automobile sector also showed growth in August. Maruti Suzuki's exports increased by 40.51 percent to 36,538 units. Royal Enfield's exports grew by 39 percent to 11,126 units. Mahindra's car exports rose by 16 percent, and Ashok Leyland's exports increased by approximately 70 percent to 1,617 units. Bajaj Auto's exports grew by 25 percent to 1,57,778 units.
