India's economy enters FY26 on strong footing as GST cuts boost demand

India’s macroeconomic outlook remains firmly positive, with easing inflation, strengthening domestic demand and improving policy transmission placing the economy on a stable growth path, noted the Monthly Economic Review for October released on Thursday, by the Department of Economic Affairs, Ministry of Finance.

- TBG NETWORK

The report notes that the rationalisation of GST rates has begun to feed into the economy, pushing consumption indicators into expansion mode and supporting both urban and rural demand.

"E-way bill generation expanded by 14.4 per cent during September and October 2025 on a year-on-year basis. At the same time, cumulative GST collection growth of 9.0 per cent for Apr-Oct 2025 indicates that the underlying revenue stream has remained resilient, aided by firm consumption and improved compliance," The report notes

Retail inflation eased to an all-time low of 0.25 per cent in October 2025, supported by GST reductions, a favourable base and an 11-year steep decline in food prices, especially vegetables.

Corporate performance in Q2 FY26 remained resilient.Net sales grew 6.1 per cent YoY, while net profits surged 12.3 per cent.