Moneycontrol Economy Pulse at 51.2 in January signals steady expansion in economic momentum

• India's economic momentum stable at 51.2 in January 2026
• GST collections up 6.2 percent, rural sales show resilience
• Urban and youth unemployment rates rose in January

Did our AI summary help?

India’s economic momentum remained broadly stable at the start of 2026, with the latest reading of the Moneycontrol Economy Pulse coming in at 51.2 for January 2026, compared with 51.4 in December 2025, according to data released on February 23.

A reading above 50 indicates economic momentum is strengthening, while a reading under 50 signals moderation.

The January reading suggests that economic activity continues to expand despite evolving domestic and global conditions.

High-frequency indicators for January continue to show mixed but broadly stable trends across sectors. Consumption-linked indicators continued to support the overall momentum signal, even as external demand indicators remain uneven and infrastructure expansion slowed during the month.

India’s goods and services tax collections rose 6.2 percent year-on-year in January to Rs 1.93 lakh crore, with two-wheeler and tractor sales outperforming last month’s numbers, showing rural resilience. Car sales growth, however, slowed, and so did demand for diesel. On the industrial side, while PMI data showed improvement, indicating stronger business activity conditions, diesel consumption, electricity demand and e-way bill generation, all proxies for industrial momentum, slowed during the month.

On the external side, exports expanded just 0.6 percent from the previous year, while major ports' cargo handling also witnessed an easing.

Jobs data wasn’t encouraging either, with both urban unemployment and youth unemployment rising in January.

The December number was revised downwards owing to data revisions in existing indices and the addition of new indicators to track economic momentum.

The slower momentum in select high-frequency indicators suggests the economy is tapering from the previous quarter. The Indian economy grew 8 percent in the first half of the year, but the numbers are due for revision in the upcoming release on February 27. The government will announce fiscal third-quarter and full-year estimates for FY26 under the new GDP series with 2022-23 base, with revisions to previous years’ forecasts as well.

The Moneycontrol Eco Pulse now incorporates close to 40 indicators, with diesel consumption, unemployment rate, female labour force participation and youth unemployment as new additions.