Winning Bizness Economic Desk

The country’s Goods and Services Tax (GST) climbed up 6.1 per cent to Rs 1,74,550-crore in December of last year (2025) as against Rs 1,64,556-crore in the same month in the previous year.

This increase in collection indicates a northward movement in economic activity.

Central GST (CGST) collections stood at Rs 34,289-crore, State GST (SGST) at Rs 41,368-crore and Integrated GST (IGST) at Rs 98,894-crore.

The government also got Rs 4,551-crore through GST compensation cess, a transitory measure until outstanding loan and interest liabilities are settled.

For the April-to-December 2025 period, gross GST collections increased 8.6 per cent to Rs 16.5-lakh-crore as compared to Rs 15.2-lakh-crore in the same period of the last fiscal.

Here, an important point to note is that despite the trimming in GST rates effective September 22, collections expanded as lower rates propelled consumer demand.

Total GST refunds in December rose to Rs 28,980-crore from Rs 22,138-crore a year-ago.

The average monthly collection in 2025-26 so far stands at Rs 1.84-lakh-crore, the highest since the GST regime was launched in 2017.

The Finance Ministry has notified that new excise duties on tobacco products and a Health and National Security Cess on pan masala will come into effect from February 1, 2026.

The present GST compensation cess on these sin goods will cease and cigarettes, tobacco and pan masala will attract a GST rate of 40 per cent while bidis will carry an 18 per cent GST rate from the above date.

The GST Council has played an important role in shaping the system since its formation, including rationalising rates from four slabs to two main rates—five per cent and 18 per cent—plus a 40 per cent rate for sin and luxury goods.

The GST Council is chaired by the Union Finance Minister Mrs Nirmala Sitharaman.

State-Level GST Collections Uneven in December 2025

The state-level performance with regard to GST collection in December of last year has been uneven.

What needs highlighting here is that 17 states in the country registered negative or only a single-digit growth in GST collections during December 2025.

States which clocked a contraction included Bihar (-7 per cent), Delhi (-4 per cent), Telangana and Tamil Nadu (-3 per cent each) and Madhya Pradesh (-1 per cent).

Here, a point to highlight is that both the southern states of Telangana and Tamil Nadu are considered industrial and financial powerhouses.

Another important point to note is that several big states registered only miniscule growth.

For example, the western state of Maharashtra clocked only a four per cent growth, while its neighbouring southern state Karnataka registered a tiny five per cent growth.

Another southern state, Andhra Pradesh (AP) witnessed a meagre three per cent growth in the Goods and Services Tax collection while the northern state of Haryana registered only a very low one per cent growth.

India’s Forex Reserves Rise USD 3.3-bn to USD 696.61-bn

The country’s foreign exchange (forex) reserves moved northward by USD 3.293-billion to USD 696.61-billion in the week to December 26, according to Reserve Bank of India (RBI) data.

The value of gold reserves also climbed up by USD 2.956-billion to USD 113.32-billion during the reporting week.

The overall kitty had increased by USD 4.368-billion to USD 693.318-billion in the previous reporting week.

For the week ended December 26, Foreign Currency Assets (FCAs), a major component of the reserves, increased by USD 184-million to USD 559.612-billion, the Reserve Bank of India data showed.

Expressed in dollar terms, the Foreign Currency Assets include the effects of appreciation or depreciation of non-US units such as the Euro, Pound and Yen, held in the foreign exchange reserves.

The Special Drawing Rights (SDRs) were up by USD 60-million to USD 18.803-billion, the country’s central bank said.

India’s reserve position with the International Monetary Fund (IMF) was up by USD 93-million to USD 4.875-billion in the reporting week, according to the Reserve Bank data.

It must be pointed out here that the price of safe-haven asset gold has been on a sharp northward movement in recent months.

In 2023, India added around USD 58-billion to its forex reserves, contrasting with a cumulative slide of USD 71-billion in the previous year of 2022. Last year, reserves increased by just over USD 20-billion.

This year so far (in 2025), the forex kitty has increased by about USD 47-48-billion.

Private Equity Investments in Real Estate Up 59 pc in 2025: Report

Private equity investments in India’s real estate sector increased 59 per cent Year-on-Year (YoY) to USD 6.7-billion in 2025, a report by Savills India said.

The investments, which include equity deals through the private route, structured debt by Alternative Investment Funds and NCD issuances, were largely driven by institutional capital, with foreign investors accounting for 76 per cent of total inflows, the report stated.

This increase in investment, according to the report, also marks a return to pre-pandemic levels.

The office segment attracted the highest investments at USD 2.4-billion, accounting for 35.3 per cent of total inflows, supported by stable leasing activity and long-term demand visibility.

Data centres and residential real estate followed with 23.2 per cent and 21 per cent shares, respectively.

While data centre investments were entirely driven by foreign capital, the residential segment saw equal participation from domestic and overseas investors.

It must be highlighted here that land continued to remain a key asset class, accounting for nearly one-fourth of total equity inflows, with over 60 per cent of land investments aligned towards office and data centre developments.

According to the Savills India report, improved regulatory transparency under RERA, balance-sheet consolidation among developers and a sharper focus on asset-level performance have helped investor confidence in the sector.

Looking ahead, private equity investments in real estate are expected to remain steady at USD 6.5-billion-to-USD 7.5-billion in 2026, with office assets in core markets, industrial and logistical parks, and data centres continuing to attract institutional capital.

PMI Data: India’s Manufacturing Growth Declines in December as Output Growth, New Export Orders Slow Down

India’s manufacturing Purchasing Managers’ Index (PMI) slid to 55.0 in December of 2025 from 56.6 in November. This marks the weakest improvement in the health of the sector in two-years.

The slide was propelled by weaker growth in output and sales with positive sentiment towards output prospects slipping to its lowest level since October 2022 and new export orders rising at their slowest pace in 14-months.

The PMI figure is compiled by S&P Global and released by HSBC and a reading above 50 indicates an expansion in activity.

The December reading was also above its long-run average of 54.2.

The manufacturing PMI indicates the health of the manufacturing sector, signalling expansion, contraction or stagnation in areas such as new orders, production, employment and inventories, making it a crucial early indicator of overall economic trends and future growth for businesses, investors and policy-makers.

Despite the Month-on-Month (MoM) decline in the PMI, the country’s manufacturing industry registered another round of impressive growth with total new orders and output again expanding at above-trend rates, though at a slower pace than earlier, according to the survey.

The PMI survey read, “The end of the 2025 calendar year was characterised by a loss of growth momentum across several measures tracked by the HSBC India Manufacturing PMI survey…..Employment rose at the slowest pace in the current 22-month period of job creation while the latest upturn in buying levels was the least pronounced in two-years.”

Despite the slowdown in growth, Indian goods producers foresee an increase in output during 2026 relative to present levels, but overall sentiment has faded to its lowest in close to three-and-a-half years, the survey added.