In January 2025, India’s GST collections recorded a strong double-digit growth, with gross collections rising by 12.3% and net collections increasing by 10.9%, compared to the slower growth of 7.3% and 3.3% respectively in December 2024, as per the NCAER monthly review. The PMI for manufacturing rose to 57.7 in January, indicating expansion, while the PMI for services maintained a high level of 56.5.
Dr. Poonam Gupta, Director General of NCAER, noted that the moderation in headline inflation to 4.3% has created more policy space. She highlighted the resilience of the agriculture sector, which supports both inflation control and the rural economy. As of February 4, Rabi sowing for the 2024-25 season reached 104% of the normal sown area, with rice and pulses sown at 101.2% and 100.3% of the normal area respectively.
Despite these positive indicators, the growth rate of bank credit remained subdued at 11.2% in December 2024, down from 20.2% in December 2023. Additionally, credit from banks to NBFCs decelerated from 15% in December 2023 to 6.7% in December 2024.
