India’s Economic Performance Across Key Sectors in Feb'25

India’s economic landscape in February 2025 displayed mixed signals, balancing resilience in key sectors with signs of moderation in others. GST collections eased, core inflation ticked up slightly, and industrial activity remained steady. The services sector continued to expand, while external trade exhibited a subdued trend. Consumer sentiment highlighted urban stability, though rural demand showed softness. This edition of Bharat Barometer provides insights into the macroeconomic indicators shaping India’s financial and industrial environment.

Macroeconomic Indicators (Score: 3/5)

• GST Collection: Growth softened to 9% in Feb-25, down from 14% in Jan-25.
• CPI & Core CPI: CPI declined to 3.6% (vs. 4.3% in Jan-25); Core CPI edged up to 4.0%.
• WPI: Data unavailable for Feb-25; last recorded at 2% in Jan-25.
• Unemployment: Urban unemployment improved to 7.81%, while rural unemployment increased to 8.78%.
• PMI Trends: Manufacturing PMI moderated to 56.3, while Services PMI rose to 59.0; Composite PMI stood at 58.8.

External Sector Trends (Score: 2/5)

• Exports & Imports: Goods exports remained weak at -1%, while imports grew 11% YoY.
• Services Trade: Export growth softened to 12%, while import growth moderated to 12%.
• FDI Inflows: Turned positive after three months of outflows; exact figures unavailable.

Government Finances (Score: 3/5)

• Direct Tax Collection: Growth stabilized at 11%.
• Revenue & Capital Expenditure: Revenue expenditure growth rose to 5%, while capital expenditure declined MoM.
• Subsidy Payouts: Continued to decline for the second consecutive month.

Industrial Activity (Score: 2/5)

• E-Way Bills & Freight: E-Way bill growth softened to 15%.
• Cargo Movement: Port cargo improved slightly, while airport cargo trends remained stable.
• Industrial Production: Power generation rose marginally; steel consumption moderated to 10%.
• Energy & Materials: Coal offtake growth declined, petroleum consumption growth moderated further.

Demand & Consumption (Score: 3/5)

• Vehicle Sales: Auto registrations grew, but passenger vehicle sales slowed.
• Insurance Premiums: Life insurance premiums remained under pressure, while non-life insurance saw marginal gains.
• Consumer Sentiment: Urban sentiment held firm, but rural sentiment remained muted.

Banking & Money Flow (Score: 2/5)

• M3 Money Supply: Growth remained stable at 10%.
• Retail Payments: UPI transactions growth softened MoM, while IMPS transactions declined further.
• SCB Credit & Deposits: Growth remained flattish at low double-digit levels.

Rural Indicators (Score: 3/5)

• Reservoir Storage: Continued to decline from peak levels recorded in Sep-24.
• Agricultural Machinery: Tractor sales growth softened, while two-wheeler sales improved slightly.
• Rural Employment: Growth remained muted post an increase in the previous month.

Capital Markets (Score: 1/5)

• Mutual Funds: Equity MF net inflows declined MoM.
• Stock Market: Trading volume contracted at a rapid pace.
• FII Inflows: Outflows persisted for another month.
• SIP Contributions: Growth continued to decline at the MoM level, with new registrations remaining negative.