India’s GDP soars 8.2% in Q2, fastest growth in six quarters

India’s economic momentum strengthened significantly in the September quarter, with official data showing real GDP rising 8.2% in Q2 of FY 2025-26. This marks a sharp improvement from 5.6% in the same quarter last year, and even stronger than the 7.8% posted in the April–June period. Despite external pressures, including tariff actions from the United States, the economy outperformed most forecasts and delivered its best growth in six quarters.

The figures, released by the National Statistics Office (NSO), highlight broad-based resilience across the economy. Manufacturing, construction and the services sector collectively powered the upswing, signalling strong underlying fundamentals.

At constant prices, GDP reached Rs 48.63 lakh crore in the July–September period, up from Rs 44.94 lakh crore a year earlier. Nominal GDP rose 8.7%, touching Rs 85.25 lakh crore.

Manufacturing & Services Lead the Charge

The secondary sector posted an impressive 8.1% expansion, supported by 9.1% growth in manufacturing and 7.2% in construction.
The services sector once again outperformed, with the tertiary segment growing 9.2%, driven by a robust 10.2% jump in financial, real estate and professional services.

Consumption Remains Steady

Private consumption showed notable strength, with real private final consumption expenditure (PFCE) rising 7.9%, compared with 6.4% a year earlier, an encouraging sign despite uneven monsoon conditions.

Agriculture Slows

Agriculture remained a drag, expanding only 3.5%, while utilities, electricity, gas and water supply registered a modest 4.4% growth.

With 8% GDP growth in the first half of FY26, India has reaffirmed its position as the world’s fastest-growing major economy. As the country moves into the second half of the financial year, policymakers will keep a close watch on global headwinds, inflation patterns and domestic demand, but the latest numbers provide a strong foundation for continued economic optimism.