The Indian economy has sustained its momentum in the first four months of FY 25 and the 6.5-7 percent growth forecasted in the Economic Survey stands for now, the finance ministry has said in its first economic review after the Lok Sabha elections.

“GST collections in the first four months of FY25 underwent a level shift pushed up by the widening of the tax base and heightened economic activity,” the ministry said in its July review which was released on August 22.

The double-digit growth in e-way bill generation is indicative of higher GST collections in the coming months. The strong performance of services and manufacturing purchasing managers’ index was also indicative of economic strength.

Flash PMI data released earlier in the day showed that the economy maintained its momentum in August as well.

The finance ministry said the Budget laid out a sustained fiscal glide path. The government revised its fiscal deficit target lower to 4.9 percent of GDP from 5.1 percent in the interim Budget. It is looking to reduce the fiscal deficit to 4.5 percent of the GDP by FY26.

The government also seems hopeful for the external sector, as it noted a reversal of trend in FY25.