Why are GST collections soaring—and will it last? 

In this episode of the State of Economy Podcast, businessline’s Shishir Sinha speaks with Aditi Nayar, Chief Economist at ICRA, to decode recent high-frequency economic indicators and what they mean for India’s economic trajectory. 

The episode begins with a look at the PMI manufacturing data hitting a three-month low and whether it signals any real slowdown. Nayar provides a nuanced view on the surge in GST collections, linking it to high crude oil imports and steady domestic demand. 

The episode also explores urban versus rural consumption patterns, the impact of softer inflation and expected rate cuts, and how these may influence household spending. With global uncertainties like tariff hikes and geopolitical tensions in the background, the conversation turns to their likely impact on private CapEx and India’s growth outlook for FY26. Tune in for clear, data-driven insights into the state of India’s economy and what lies ahead. 

(Host: Shishir Sinha Producer: Amitha Rajkumar,Prethicshaa Gurumoorthy)

About the State of the Economy podcast 

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.

Published on June 3, 2025