"These (indirect tax) collections indicate that the underlying momentum in the economy continues to improve across all sectors ...(and suggests) healthy increase in nominal GDP growth," he told reporters here.
Indirect tax revenue jumped over 37 per cent to over Rs 2.1 lakh crore in the April-July period this year on the back of higher excise duty collections.
After discounting the impact of additional revenue realisation measures taken by the government in 2015-16 budget, the increase in indirect taxes was 14.6 per cent, the Chief Economic Advisor (CEA) said.
The rise in indirect tax collections between April-July, Subramanian said, can also be partly attributed to additional measures like hike in excise duty on diesel and petrol and clean energy cess, withdrawal of exemptions for motor vehicles and consumer durables and increase in service tax from 12.36 per cent to 14 per cent with effect from June 2015.
"It also includes customs collections, which have also been helped by rupee depreciation of 6 per cent between April and July," Subranamian added.
For July 2015, indirect tax collections increased by 39.1 per cent year-on-year.
Answering questions on the impact of devaluation of Chinese currency Yuan to encourage its exports, Subramanaian said the policy makers world over would have to take note of the emerging developments.
"There is no doubt that China is responding to its own internal development of slowing down of growth and exports in order to give its economy a boost. All of us policymakers around the world, including India, have to take notice of this action," he said.