Goods and services sectors' taxable supply rise 27 pc in early FY27
New Delhi, June 1
India's consumption and economic activity, because of strong domestic demand momentum, remained robust in early period of FY27, with goods taxable supply rising 27 per cent and services expanding 22.2 per cent in April, according to government sources on Monday.
Taxable supply across goods sectors grew 26.9 per cent year-on-year to Rs 40.10 lakh crore in April 2026 from Rs 31.61 lakh crore a year ago, with all 27 commodity groups registering positive growth, according to the data.
The data of April -- reported in GST returns filed during May -- showed that growth remained broad-based across agriculture, manufacturing, chemicals, metals, electronics, automobiles and consumer goods.
In addition, sectors such as gold and precious metals recorded a 46.9 per cent rise in taxable supply, while electric machinery and electronic appliances grew 34.1 per cent.
Telecom equipment expanded 24.6 per cent, passenger vehicles and buses rose 21.3 per cent, while prepared food products registered a growth of 27.1 per cent, the data showed.
Meanwhile, the services sector also maintained strong momentum, with taxable supply increasing 22.2 per cent year-on-year to Rs 11.50 lakh crore from Rs 9.41 lakh crore in the corresponding period last year.
Major categories such as real estate, construction, transport, professional services and hospitality recorded positive growth during the month.
Real estate services posted a sharp 50 per cent increase, while transport, postal and courier services expanded 21.3 per cent.
Similarly, accommodation, food and beverage services recorded growth of 41.6 per cent.
The strong performance in both goods and services suggests that domestic demand growth remains broad-based rather than concentrated in a few sectors.
Besides, IGST collections on imports increased more than 20 per cent year-on-year during May.
Moreover, electronic components emerged among the strongest contributors, with imports of processing units rising 387 per cent and memory chips increasing 205 per cent.
Additionally, the growth momentum was visible in import-related tax collections, with IGST on imports rising more than 20 per cent in May. Coal alone accounted for over 8 per cent of incremental IGST growth, while processing units and memory chips recorded growth of 387 per cent and 205 per cent, respectively.
— IANS
Reader Comments
Real estate up 50% and hospitality up 41%? That's impressive! Must be the infrastructure push and travel boom post-pandemic. Hope small businesses are also benefiting from this growth, not just big players.
The 387% jump in processing units and 205% in memory chips imports is huge! Hope this translates into more domestic manufacturing soon. Make in India needs to pick up pace in electronics. Still, good signs overall. 📈
Coming from the US and living in India now, I'm amazed by the resilience of Indian demand. Back home, we're seeing slowdowns but here it's all positive. 27% growth in goods is no joke. Keep it up, India! 🚀
All commodity groups positive? Even agriculture? That's rare and good news for farmers. But I do wonder about inflation—if demand is this strong, prices might rise. RBI should keep an eye on monetary policy. Still, happy to see broad-based growth.
These numbers are fantastic! Transport and courier up 21% shows we're consuming and moving goods actively. Also telecom equipment up almost 25% bodes well for 5G rollout. Only slight concern: imports growing faster than domestic production in some areas.
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