India’s economy is running at full speed. GDP grew 7.8% year-on-year in the April-June quarter, stronger than expected, driven by investment demand, resilient consumption and solid growth in manufacturing and services.

The strong start prompted a wave of upgrades. The Asian Development Bank raised its growth forecast for India this fiscal year to 7% from 6.6% in its September outlook. S&P Global Ratings, Fitch Ratings and Moody’s all raised their India forecasts in the same month, to 7%, 6.9% and 7% respectively.

Tax revenues are booming too. Net direct tax collections rose nearly 13% to Rs 12.12 lakh crore between April 1 and September 17. Gross GST collections hit Rs 1,99,853 crore in August, up 14.8% from a year ago and the highest August figure on record.

The surge in output and tax collections reflects an economy in strong shape. The September quarter figures, due in the coming months, will show whether this momentum continues.