On the optimistic facet, India's manufacturing exercise strengthened and petrol consumption elevated at a quick clip.
Economists stated this was a transitory moderation and development is predicted to achieve momentum once more, helped by a possible good monsoon, easing inflation and financial rest by the RBI. The central financial institution has forecast development at 6.7% in FY26.
GST collections expanded on the slowest within the final 50 months at 6.2% in June, automotive gross sales dropped 6% within the month from a yr in the past and the UPI witnessed a slight decline in each transaction quantity and worth in June from Could.
“Round 6% development in GST collections, coupled with lower than 4% development prematurely tax assortment for first quarter of FY26 does point out softening of demand and cautious outlook,” stated Pratik Jain, accomplice, Worth Waterhouse & Co LLP.
Beneficial climate situations
ET reported Tuesday that gross sales of air conditioners and fridges dropped sharply within the April-June quarter within the wake of milder-than-expected summer time temperatures.
Knowledge launched on Monday confirmed India's industrial output development slowed to a nine-month low of 1.2% in Could, attributable to weak manufacturing development together with contraction in mining and electrical energy sectors.
Personal sector corporations introduced new tasks price Rs 3.5 lakh crore within the quarter ended June, up from Rs 1.4 lakh crore in the identical quarter final yr, in accordance with knowledge from the Centre for Monitoring Indian Economic system (CMIE). Nevertheless, this was the slowest in 4 quarters.
India's manufacturing exercise rose to a 14-month excessive of 58.4 in June, pushed by robust development in output and new orders. The HSBC Buying Managers Index (PMI), compiled by S&P World, was 57.6 in Could and 58.3 in June 2024.
The UPI platform processed 18.40 billion transactions through the month, down from 18.68 billion in Could. Transaction worth dipped to ₹24.04 lakh crore from ₹25.14 lakh crore in Could, in accordance with knowledge launched by the Nationwide Funds Company of India (NPCI) on July 1.
Energy consumption dipped 1.5% from a yr earlier to 150.04 billion items in June.
OUTLOOK
Economists anticipate development to select up going forward.
“Regardless of a possible second-half slowdown, India is poised to develop near pattern, backed by beneficial climate situations, 0.6% GDP price of coverage assist for city shoppers, and elevated public capex,” stated Anubhuti Sahay, senior economist, Commonplace Chartered Financial institution.
Whereas the info signifies a blended image, the Indian economic system is prone to have grown by 6.8% within the June quarter as the bottom is beneficial, she stated.
