India's economic activity has gathered significant momentum after the recent reduction in the GST, according to the Finance Ministry's latest monthly report released on Thursday. A sharp rise across high-frequency indicators signals stronger consumption, robust production levels and improved tax compliance.
Data shows that e-way bill generation surged 14.4% year-on-year during September and October 2025, underscoring heightened goods movement across states. Simultaneously, GST collections grew 9% during April-October 2025, reflecting steady revenue inflows despite rate rationalisation. The ministry said that the growth in GST receipts highlights a resilient underlying revenue stream supported by firm consumer demand and tighter compliance measures.
On the production side, the manufacturing sector continued its upward path. The Manufacturing Purchasing Managers' Index (PMI) rose to 59.2 in October, up from 57.5 in September-indicating one of the strongest expansions in recent months. The ministry attributed this improvement to GST relief measures, higher productivity, and rising investments in automation and technology.
The services economy also maintained strong momentum. The Services PMI stood at 58.9 in October 2025, well above the 50-point threshold that signals expansion. This sustained performance suggests a broad-based economic revival, with both manufacturing and services contributing to growth.
With consumption strengthening, compliance improving, and business activity expanding, the Finance Ministry said the overall economic outlook for the second half of FY26 remains positive.
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