Winning Bizness Desk
Manufacturing Leads Growth as India’s IIP Rises 4.9 Per Cent in April
India’s Index of Industrial Production (IIP) growth stood at 4.9 per cent in April of this year (2026) while in the year-ago period, industrial production had registered a higher growth of 5.7 per cent.
The country’s industrial output data for April showed mixed trends across sectors with mining production sliding 5.1 per cent during the month.
However, manufacturing production moved northward 6.2 per cent from a year earlier, while electricity and gas production climbed 4.9 per cent.
Water supply also registered a growth, rising 6.6 per cent Year-on-Year (YoY) in April.
Within manufacturing, 17 out of 23 industrial groups at NIC 2-digit-level have recorded a positive growth in April this year as against April of 2025 (last year).
The top three contributors for April 2026 are—manufacture of motor vehicles, trailers and semi-trailers (12.7 per cent), manufacture of electrical equipment (19.2 per cent) and manufacture of machinery and equipment n.e.c (12.9 per cent).
On the use-based classification front, consumer durables production increased 4.3 per cent YoY in April.
Infrastructure and construction goods output increased 7.1 per cent while capital goods production registered a strong 16 per cent YoY growth during the month.
The item basket covers 463 item groups with 120 new groups, including minor minerals, rare earth minerals, gas, water supply and waste management and sewerage.
A point that needs highlighting here is that the Ministry of Statistics and Programme Implementation (MoSPI) has revised the base year for IIP from 2011-12 to 2022-23. This is the first set of data under the revised base year.
“Purpose of updating base year is to ensure sync between IIP and evolving industrial structure,” MoSPI said.
Some new items included under the series are debit cards, credit cards, CCTV cameras, stents, vaccines, aircraft and spacecraft parts.
An important point to be noted here is that tubes for cycles, kerosene, fluorescent tubes, printing machinery and sewing machines are among the items that have been dropped.
India Clocks 7.7 pc GDP Growth in FY 26 with Q4 Growth at 7.8 pc
The country’s economy expanded 7.7 per cent last fiscal (FY 26), up from the 7.6 per cent projected in the second advance estimate, official data released by the Statistics Ministry showed.
In the previous fiscal (FY 25), real GDP growth was 7.1 per cent. In Q4, GDP grew 7.8 per cent, down from eight per cent in Q3 FY 26.
The decline in Quarter-on-Quarter (QoQ) growth was due to a sharp slide in manufacturing growth, which declined to 7.3 per cent in Q4 from 12.8 per cent in the previous quarter (Q3).
Growth in FY 27 is expected to lower by 110 basis points (bps) to 6.6 per cent as projected by the Reserve Bank of India (RBI).
The Gross Value Added (GVA) growth was 7.9 per cent during FY 26. In Q4 too, growth was the same.
The point that needs to be highlighted here is that the full year’s GDP (of FY 26) was released with the new base year of 2022-23.
Nominal GDP in FY 26 grew by 8.9 per cent, down from 9.7 per cent in FY 25. Trade, transport and hospitality registered a higher growth of 11 per cent in FY 26, reflecting the trend of higher mobility in the economy and higher travel and tourism activity.
The financial sector too clocked a higher growth which can be attributed to higher growth emanating from the banking sector where both deposits and credit grew at impressive rates by end-year.
India’s GST Collection up 3.2 pc in May on YoY Basis
Gross GST revenue collection stood 3.2 per cent higher in May of this year as against the Rs 1.88-lakh-crore clocked in May of 2025.
May’s collection stood at Rs 1.94-lakh-crore which is much lower than the record Rs 2.42-lakh-crore in the previous month of April.
Gross domestic GST collections registered a de-growth of 2.6 per cent Year-on-Year (YoY) while net domestic GST revenues dipped by 2.3 per cent and domestic refunds contracted by 4.3 per cent.
However, this was more than offset by strong growth in GST collection on imports, with IGST from imports rising 19.1 per cent in May and nearly 30 per cent cumulatively this year.
Despite the subdued May collections, the government is hopeful of meeting the Rs 10.19-lakh-crore GST revenue target for the current financial year.
On a cumulative basis for the first two-months of the current financial year, gross GST collections stand at Rs 4,36,887-crore as against Rs 4,11,437-crore in the corresponding period of the last year.
Gross Central GST (CGST) collection from domestic transactions during May stood at Rs 37,397-crore, State GST (SGST) at Rs 45,143-crore and Integrated GST (IGST) at Rs 51,990-crore.
IGST collection from imports rose 19.1 per cent during May to Rs 59,654-crore, signalling expansion in industrial capacity. After adjusting refunds, net GST revenue in May rose 3.3 per cent to about Rs 1.67-lakh-crore.
State-wise GST Collections Show Mixed Trend
State-level data with respect to the GST revenue collection in May shows a mixed picture.
Uttar Pradesh registered an increase in GST revenue at 13 per cent. Two other states—Haryana and Telangana—were also among the stronger performers amongst the states. The former’s GST revenue was up eight per cent while Telangana clocked a six per cent northward movement.
However, several large states witnessed declines. Revenue of the southern state of Tamil Nadu slid 15 per cent while it dropped by 17 per cent in Delhi. West Bengal and Rajasthan also registered declines—the former by nine per cent and the latter by 11 per cent.
Madhya Pradesh, Gujarat and Kerala clocked a moderate one per cent growth in GST revenue in the same period while Maharashtra, the largest contributor with Rs 29,141-crore, was flat on a YoY basis.
Haryana Tops GST Revenue Collection in May with 22 pc Increase
The northern state of Haryana has emerged as the top performing state in the country in terms of state GST revenue growth for May of this year, clocking a 22 per cent increase over the corresponding month of last year.
An important point to be highlighted here is that the state significantly outperformed the national average growth rate of six per cent during the period.
The state’s net state GST collection (post-settlement) stood at Rs 4,456-crore in May 2026, an increase of Rs 807-crore as compared to Rs 3,649-crore collected in May 2025.
Three other states—Meghalaya, Karnataka and Gujarat—followed Haryana with growth rates of 19 per cent, 17 per cent and 16 per cent, respectively.
Haryana has also secured the first position in cumulative state GST revenue growth during the first two-months of the financial year 2026-27.
A point to be noted here is that Haryana recorded a 40 per cent increase in GST collections during April-May compared to the corresponding period of the previous financial year, well above the national average of 23 per cent.
Officials said that Haryana has consistently maintained a strong growth in GST revenues. During the previous financial year 2025-26, the state also clocked the highest growth rate of 22 per cent as against the national average of six per cent.
The sustained increase in GST collections can be mainly attributed to Haryana’s expanding economy and efficient tax administration.
The excise and taxation department has intensified data analytics-based enforcement, launched drives against fake tax-payers, strengthened compliance measures and taken steps to plug revenue leakages.
