GST collections, gross and web, achieved strong double-digit development of 12.3 per cent and 10.9 per cent respectively in January 2025, as in comparison with subdued development of seven.3 per cent and three.3 per cent in December 2024, in response to NCAER month-to-month evaluate.
India’s Items and Companies Tax (GST) collections demonstrated strong development in January 2025, with gross collections growing by 12.3% and web collections rising by 10.9% in comparison with the identical interval within the earlier yr. This marks a big enchancment from December 2024, which noticed extra modest development charges of seven.3% in gross collections and three.3% in web collections.
Key Financial Indicators:
Buying Managers’ Index (PMI): The manufacturing sector’s PMI climbed to 57.7 in January 2025, indicating growth, whereas the providers sector maintained a robust PMI of 56.5.
Inflation: Headline inflation moderated to 4.3%, offering extra coverage flexibility. Dr. Poonam Gupta, Director Normal of the Nationwide Council of Utilized Financial Analysis (NCAER), famous that this moderation “has opened up extra coverage house.”
Agricultural Resilience: As of February 4, 2025, Rabi sowing for the 2024-25 season reached 104% of the traditional sown space. Particularly, rice and pulses had been sown over 101.2% and 100.3% of their respective regular areas, reflecting the agriculture sector’s resilience.
Areas of Concern:
Financial institution Credit score Progress: The expansion fee of financial institution credit score decelerated to 11.2% in December 2024, down from 20.2% in December 2023. Moreover, credit score from banks to Non-Banking Monetary Firms (NBFCs) slowed from 15% in December 2023 to six.7% in December 2024.
General, the surge in GST collections and optimistic PMI figures counsel strengthening financial exercise in India. Nevertheless, the slowdown in financial institution credit score development signifies potential challenges in monetary intermediation that will should be addressed to maintain this momentum.
