August Data Lift FY27 Outlook
New Delhi, September 5, 2026: India’s economic momentum continued to strengthen in August, with key indicators across taxation, automobiles, electricity, fuel consumption and merchandise exports recording year-on-year growth following the country’s stronger-than-expected 7.8 per cent GDP expansion in the April-June quarter of FY2026–27.
Gross Goods and Services Tax collections increased 14.8 per cent year-on-year to Rs 1,99,853 crore in August, according to provisional government data. Gross domestic GST revenue rose 9.3 per cent to Rs 1,37,249 crore, while revenue from imports increased 29 per cent to Rs 62,604 crore.
The automobile sector also recorded strong growth. Maruti Suzuki India reported total sales of 2,19,220 units in August, representing a 21.3 per cent year-on-year increase. Its domestic sales, including light commercial vehicles, climbed 34 per cent to 1,80,078 units.
Tata Motors Passenger Vehicles reported sales of 67,753 units during the month, up 56 per cent from a year earlier. Industry-wide wholesale passenger vehicle sales increased 35.7 per cent year-on-year to 4,48,319 units.
Power demand also strengthened, with electricity consumption rising 12.85 per cent year-on-year to 169.01 billion units in August.
Fuel consumption showed similar momentum. Petrol sales by state-run fuel retailers increased 9.1 per cent to 3.48 million tonnes, while diesel sales rose 10.2 per cent to 6.27 million tonnes.
India’s external trade also remained positive. Merchandise exports during August 1–21 increased 15 per cent year-on-year to more than US$25 billion, taking exports during the April-August 21 period above US$200 billion.
The August performance follows India’s 7.8 per cent GDP growth in the first quarter of FY2026–27. The quarterly expansion exceeded the Reserve Bank of India’s 7 per cent projection as well as the 7.1 per cent median estimate from a Reuters poll.
The stronger-than-expected economic performance has prompted economists to raise their full-year growth forecasts. State Bank of India increased its FY27 projection to 7.3 per cent from 6.6 per cent, while HDFC Bank raised its estimate to 7 per cent from 6.8 per cent.
Economists have attributed the first-quarter performance to factors including investment, manufacturing, domestic consumption and services. The latest August indicators provide additional evidence of broad-based economic activity across several sectors.
However, sustaining the current pace of expansion through the remainder of FY2026–27 will depend on domestic demand, global economic conditions, trade developments and other external factors.
