In April, India's goods and services tax (GST) collections increased 12% year on year to an all-time monthly high of 1.87 lakh crore, kicking off the new fiscal year on a high note.

Other economic data released on Monday, such as the manufacturing Purchasing Managers' Index (PMI) for April, coal output, fuel demand, and auto sales, among others, indicated that the economy was holding steady despite global headwinds. The drop in crude prices to below $80 per barrel is expected to boost the economy.

"Exciting news for the Indian economy!" Rising tax collection despite lower tax rates demonstrates GST's success in increasing integration and compliance," Prime Minister Narendra Modi tweeted.

Official data released on Monday showed that the April GST collection surpassed the previous monthly record of 1.67 lakh crore set in April 2022 by 19,495 crore.

The S&P Global India manufacturing PMI increased to 57.2 in April from 56.4 in March, owing to increased demand, output growth, and orders.

"The increase in GST and the improvement in PMI are symptomatic of a strong domestic economy, even as external clouds gather on the horizon," said Barclays' Rahul Bajoria. "We expect India's economic outperformance to continue for quite some time."

According to industry estimates, automakers delivered 331,747 vehicles to dealerships in April, a 12.9% increase from 293,821 the previous year.

Coal production increased 8.7% year on year to an all-time high of 73 million tonnes.