Economy...

“We are now factoring in a pickup in growth momentum in FY24. We are upgrading our baseline forecast from 6.2 per cent to 6.7 per cent,” Ghosh added.

Experts anticipate GST would see an expansion by 1011 per cent this fiscal year, aligned with the government’s growth estimate.

With the May figure, gross GST has crossed ~1.5 trillion for the fifth time since the implementation of the indirect tax regime, making it a new base for the current fiscal year.

“GST in May has modestly exceeded our expectations. Over the next few months, we expect it to print at ~1.55-1.65 trillion and record an expansion of 10-11 per cent in YOY terms, broadly in line with the nominal GDP growth expected in FY24,” said Aditi Nayar, chief economist, ICRA.

Strong growth in the manufacturing PMI came after the March quarter GDP data showed 4.5 per cent growth in manufacturing after two consecutive quarters of contraction.

Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said the PMI’S spotlight on soaring sales showcased robust demand for Indian-made products both domestically and internationally.

“While the upturn in domestic orders strengthens the foundations of the economy, rising external business fosters international partnerships and boosts India's position in the global market. Combined, they also generated more employment opportunities in May,” she added.

The World Trade Organization (WTO), in its Goods Trade Barometer, released on Wednesday, said globally trade in goods was expected to witness a turnaround in the June quarter of this year due to a recent pickup in export orders, though the preliminary data suggested trade remained depressed in the March quarter of 2023.