India’s economy delivered a strong performance in the July–September quarter of FY 2025-26, recording 8.2% GDP growth, surpassing all market forecasts. This marks an improvement over the 7.8% growth seen in the April–June quarter, signalling resilient domestic demand despite global economic uncertainties.

According to the Statistics Ministry, real GDP rose 8.2% in Q2 compared to 5.6% in the same period last year. Nominal GDP expanded by 8.7%, reflecting steady price dynamics and robust economic activity.

Growth was driven primarily by the Secondary and Tertiary sectors, which expanded 8.1% and 9.2%, respectively. Manufacturing remained a key engine with 9.1% growth, supported by strong production output and improved capacity utilisation. The construction sector also grew a healthy 7.2%, benefiting from infrastructure spending and urban development projects.

In services, Financial, Real Estate & Professional Services posted an impressive 10.2% growth, sustaining momentum in India’s fast-expanding formal economy. Agriculture grew 3.5%, while utilities—including electricity, gas, and water—registered 4.4%, indicating moderated but stable performance.

Consumer demand remained strong, with Private Final Consumption Expenditure (PFCE) rising 7.9%, up from 6.4% in the same quarter last year.

Overall, India recorded 8% GDP growth in the first half of FY 2025-26, significantly higher than the 6.1% growth seen in H1 of the previous fiscal year—further cementing its position as the world’s fastest-growing major economy.