Highs and lows: On GST metrics

That GST grossed ₹2.11 lakh crore in July , expanding by 15.4% year-on-year, the second best growth in FY27, could indicate that the Indian economy is resilient. But it conceals the uneven internal and external trajectories, and disparities within India. The 26.9% growth in import IGST vis-à-vis a 4.5% rise in domestic revenues ferrets out the criticality in the trade-led tax buoyancy. IGST’s faster pickup started during the post-pandemic recovery, reflective of global commodity inflation, higher imports of capital goods and the rupee’s depreciation. A 10%-12% depreciation of the Indian denomination over the past year had its reflection on the rupee cost of crude oil, electronics, machinery and chemicals — they collectively constitute as much as 50% of total imports — contributing to a higher import bill. Although gold imports added to higher IGST collections, supply fell to a six-year low, due to lower bullion imports, which fell 22%.