This augurs well for the prospects of the fastest-growing major economy -which recently became the world’s fourth-biggest, overtaking Japan – amid global uncertainty.
Sales of cars, sedans and utility vehicles rose to 405,000-407,000 in December, according to industry estimates, an increase of about 26% over 322,000 units sold in the same period in 2024. This is the third straight month of strong double-digit growth in passenger vehicles after the reduction in GST that took effect September 22.
Gross GST collections in December rose 6.1% to ₹1.74 lakh crore from a year earlier.
High Production
The increase underscores the theme of rate rationalisation bolstering demand.
Net GST, after adjusting for refunds, was ₹1.45 lakh crore, up 2.2% year-on-year. “GST collections for December 2025 reflect continued revenue buoyancy, underscored by strong festive season consumption and the positive impact of recent rate rationalisation measures,” said Mahesh Jaising, partner and indirect tax leader, Deloitte India.
Data released on Monday showed India’s industrial output rose at a 25-month high of 6.7% in November.
The Unified Payments Interface (UPI), operated by the National Payments Corporation of India (NPCI), scaled fresh highs in December in both transaction volumes and value. UPI processed 21.63 billion transactions in December, up from 20.47 billion in November. The value of transactions rose nearly 6% to ₹27.97 lakh crore from ₹26.32 lakh crore in November.
Petrol, diesel and LPG sales in December exceeded their average growth rates for the year. Petrol sales increased 6.7% in December, compared with a growth of 6.3% during April-December. Diesel consumption was up 5% in December, significantly higher than the 3% growth recorded during April-December.