By Admin 
Indian Economy Report: While there is an atmosphere of uncertainty in the markets around the world after the Iran-US war, the Indian economy is continuously shining. In the latest economic report released by the government, it has been said that the situation of domestic demand and investment in the country is strong. Be it GDP growth, manufacturing sector or record sales of vehicles, the country is progressing on every front.
How is the economic health of the country?
India’s GDP growth in the financial year 2025-26 has been 7.7%. In the last quarter of the year it further jumped to 7.8%. That means the pace of the country’s economy is increasing. Tremendous growth is being seen in both the manufacturing and services sectors of the country. PMI stood at 54.2 in June 2026. It is above the 50 mark for the 37th consecutive month, which means that work in factories is continuously increasing. Companies are getting new orders and employment opportunities are being created.
At the same time, the Services PMI Index increased from 58.8 in April to 59.8 in May. The great thing is that this is the biggest increase after November 2025. This sector is strong due to new customers and export demand.
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India’s Index of Industrial Production or IIP grew at a pace of 5.1% in May 2026, which is the highest in the last 5 months. In manufacturing, the automobile sector has jumped by 14.5% and the electrical equipment sector has jumped by 20.8%. An increase of about 10% has also been recorded in electricity and gas supply.
Government’s big bet on infrastructure
It has been told in the report that the government is strengthening the basic infrastructure of the country. In the first two months (April-May) of the financial year 2026-27 alone, the government has made a capital expenditure of Rs 2.51 lakh crore. This is approximately Rs 29 thousand 650 crore more than last year.
Let us tell you that out of this, Indian Railways alone has spent more than Rs. 84 thousand crores in April-May, which is about 30 percent of its target for the entire year. This money is being spent on the safety of trains, new signal systems, protection systems and laying of new tracks.
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Jump in GST collection
This report shows that the government is successful even in the matter of tax collection. GST collection increased by 13.9% to about Rs 1.95 lakh crore in June 2026, which was Rs 1.71 lakh crore in June 2025. Talking about direct tax, till June 17, the net direct tax collection has increased by 14.64% to Rs 5.21 lakh crore. There is good growth in both corporate and personal taxes.
Demand for vehicles increased in villages
Interestingly, vehicle sales in rural areas have increased by 7.8% in the month of May. If we talk about the entire country, then 26.11 lakh vehicles were sold in April 2026, which is the biggest ‘April record’ in the auto history of India. There was bumper demand for SUVs, EVs and two-wheelers in May and June also.