India’s Economy Records Strong 8.2% GDP Growth in Q2 FY 2025-26
India’s economic momentum continues to rise, with the National Statistics Office (NSO) releasing the latest GDP numbers for the July–September quarter (Q2) of FY 2025-26. The data paints a robust picture of the country’s growth trajectory, showcasing strong performance across major sectors.
GDP Growth Beats Expectations
India’s real GDP grew by an impressive 8.2% in Q2, a sharp jump from the 5.6% growth recorded during the same period last year. The figure also surpasses the 7.8% growth registered in Q1 of the current financial year, indicating a steady acceleration in economic activity.
The growth rate has exceeded market expectations, strengthening India’s status as a high-growth economy amid global uncertainties.
What’s Driving the Growth?
A closer look shows that both the services and manufacturing segments delivered strong results:
1. Services Sector Shines
The tertiary (services) sector expanded by 9.2%, reflecting strong demand and healthy business activity.
Financial, real estate, and professional services grew even faster at 10.2%, becoming one of the biggest contributors to growth this quarter.
2. Solid Momentum in Industry
The secondary sector posted an 8.1% growth, supported by sturdy output.
Manufacturing emerged as a key performer with 9.1% growth, pointing to improving industrial activity and rising demand.
Construction grew by 7.2%, aided by ongoing infrastructure projects and real estate recovery.
Other Major Indicators
Nominal GDP (at current prices) grew by 8.7% in Q2.
Private Final Consumption Expenditure (PFCE) — a measure of household spending — rose by 7.9%, indicating stronger consumer sentiment.
For the first half of FY 2025-26 (April–September), India’s real GDP has grown 8.0%, showcasing consistent performance.
India Remains Among the World’s Fastest-Growing Economies
The latest GDP numbers reaffirm India’s position as one of the fastest-growing major economies globally. With strong sectoral performance, rising consumption, and resilient economic fundamentals, the outlook for the remaining fiscal year appears optimistic.
