GST collection growth slumped in June due to reduced mop-up from domestic and imported items, while investment appetite clocked its worse April-June performance in several years. Meanwhile, the central government has approved a scheme to support employment generation in the country.
GST collection growth slumped in June due to reduced mop-up from domestic and imported items, while investment appetite clocked its worse April-June performance in several years. Meanwhile, the central government has approved a scheme to support employment generation in the country.
Collections stumble
Growth in India's goods and services tax (GST) collections slumped to 6.2% year-on-year in June, the slowest pace since June 2021, according to the latest data from the finance ministry. This follows strong performances in April and May, which saw growth of 12.6% and 16.4%, respectively.
The moderation stemmed from a sharp dip in tax collections from both domestic transactions and imports. Net GST revenue, after adjusting for refunds and transfers, stood at ₹1.59 trillion, marking an even smaller 3.3% year-on-year rise.
Investment lull
Indian companies entered FY26 on a cautious note, with fresh investment proposals plunging to one of the lowest levels in five years. According to CMIE's CapEx database, new projects worth ₹4.1 trillion were announced in Q1FY26—the weakest since the pandemic-hit first three quarters of FY21 and the general election quarter (first) of FY25.
The drop in Q1FY26 was led by government capital expenditure, which hit a decade-low of just ₹0.5 trillion. The private sector, with ₹3.5 trillion worth of announcements, dominated the quarter—but even that marked a four-quarter low.
Job push
₹1 trillion: That's the amount the Union cabinet approved for employment linked incentive (ELI) scheme to support employment generation, enhance employability and social security across all sectors, with special focus on the manufacturing sector.
The scheme, which was announced as part of the Union Budget 2024-25, aims to incentivise over 35 million jobs that will be generated between August 2025 and July 2027. It will also provide direct financial benefits of up to ₹15,000 to 19.2 million employees who register with the Employees' Provident Fund Organisation (EPFO) for the first time.
Activity boost
India's manufacturing and services sector activity reached 14-month and 10-month highs, respectively, in June. The HSBC India manufacturing PMI, compiled by S&P Global, rose to 58.4 in June from 57.6 in May, slightly above 58.3 in June 2024. India's services PMI increased to 60.4 from May's 58.8, though marginally below the previous June's 60.5.
Manufacturing activity expanded due to increased output, new orders, and job creation, while services growth was driven by robust international sales and employment gains.
Dominance derailed
Ola Electric, once the dominant electric two-wheeler player, has lost ground.
Latest vehicle registrations data shows all other top five electric two-wheeler players recorded over 100% year-on-year increases during the April-June quarter of FY26. In contrast, Ola Electric reported a 46% decline from the same period last year.
TVS Motors and Bajaj Auto have overtaken Ola as new market leaders. Ola's market share has slipped to about 20% in the April-June quarter, compared to nearly 50% in the same period a year ago.
Digital boom
₹613.2 million: That's the average daily unified payments interface (UPI) transactions in June, according to latest monthly data released by National Payments Corporation of India (NPCI). With another record-high average transactions, UPI continues to touch new heights every passing month.
Daily transactions rose nearly 2% month-over-month and surged 35% year-over-year in June 2025. However, growth momentum shows signs of moderation, with annual growth slowing from over 50% increases to around 30% in just twelve months.
Dividend division
India Inc.'s dividend bonanza remains heavily skewed, with traditional powerhouses dominating payouts.
A Mint analysis of 496 BSE 500 companies reveals BFSI and IT together command over 40% of total dividends in FY25. These cash-rich sectors continue reinforcing their reputation as reliable dividend machines, while others lag significantly.
The oil & gas sector showed visible signs of pressure with dividend payouts dropping 28% year-on-year. Once a dependable dividend contributor, the sector appears to be retreating amid tightening cash flows. Sectors like logistics and media contributed under 1% each.
Chart of the week: Global leap
India scored 67 in the United Nations Sustainable Development Goals Index 2025, its highest ever, placing it 99th among 167 countries. This marks the first time India has entered the global top 100, reflecting progress across 17 goals including poverty, health, and education.