**Festive Consumption Remains Strong Despite Inflation and Global Concerns**
India's economy demonstrated strong performance during the festive season despite rising inflation, higher interest rates, and global economic uncertainties.
India's Goods and Services Tax (GST) collections increased by 22.9% year-on-year in October, reaching ₹2.31 lakh crore. This significant growth reflects strong consumer spending and increased economic activity across the country.
Passenger car sales reached an all-time high of more than 525,000 units, compared to 465,000 units in October 2025, representing approximately 13–14% growth.
Digital payments also recorded impressive growth. UPI transactions reached 25.47 billion in October, an increase of 23%. The total transaction value rose by 16% to ₹31.53 lakh crore, highlighting the increasing adoption of digital payment systems in India.
Electric two-wheeler sales achieved their highest monthly figure of 224,000 units, reflecting growing demand for electric mobility and sustainable transportation.
Additionally, India's electricity consumption increased by nearly 22% year-on-year, reaching 160 billion units, indicating increased energy demand and economic activity.
**GST Collection Data (April–October)**
April: ₹2,42,702 crore | Growth: 8.7%
May: ₹1,94,184 crore | Growth: 3.2%
June: ₹1,94,812 crore | Growth: 13.9%
July: ₹2,11,205 crore | Growth: 15.4%
August: ₹1,99,853 crore | Growth: 14.8%
September: ₹2,03,521 crore | Growth: 14.7%
October: ₹2,31,290 crore | Growth: 22.9%
**Conclusion**
The strong performance of GST collections, automobile sales, digital payments, electric vehicle sales, and electricity consumption highlights the resilience of India's economy. Despite inflation and global economic challenges, festive demand has significantly supported consumer confidence, business activity, and overall economic growth. These positive indicators suggest continued economic momentum and a promising outlook for India's future growth.
The Economic Times
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