The country’s Goods and Services Tax (GST) collection in April has once again set a new benchmark. Since its rollout in 2017, April collections have consistently posted record highs, driven by year-end financial settlements. This year was no different, with gross GST receipts touching Rs 2.37 lakh crore—up 12.6 per cent from April 2024. After refunds, the Centre retained over Rs 2.09 lakh crore, reflecting a healthy 9.1 per cent year-on-year rise. Beneath these figures lies a broader trend of improved compliance, aided by rapid fintech adoption, particularly among micro, small and medium enterprises.

India’s fintech usage, at 87 per cent, far exceeds the global average. It has helped draw millions into the formal banking and taxation fold, easing regulatory oversight and enabling faster refunds—a lifeline for small businesses with tight cash flows. Notably, April also saw an 86 per cent increase in GST refunds to exporters and a 20.8 per cent rise in import-related revenues. This aligns with the strong showing in the HSBC India Manufacturing PMI, which hit 58.2—its highest in ten months.

A surge in new export orders, the largest in over 14 years, suggests Indian producers are benefiting from shifting global supply chains. With U.S. tariffs on Chinese goods set to resume after a 90-day pause, India is emerging as a preferred alternative for sourcing, with Apple planning to make most of its U.S.-bound iPhones in India. Yet, this global tailwind is likely to prove temporary. India’s manufacturing growth slowed to 4 per cent last year, underscoring the need for structural support. Durable gains will depend on boosting domestic demand and securing meaningful concessions in ongoing trade negotiations. April’s GST surge is encouraging—but sustained momentum will require deeper policy resolve.