New Delhi, Nov 28: India’s GDP growth accelerated to a robust 8.2 per cent in the second quarter (July-September) of the current financial year compared to the corresponding figure of 5.6 per cent during the same quarter of FY 2024-25, according to figures released by the Ministry of Statistics on Friday.
The secondary and tertiary sectors, with growth rates of 8.1 per cent and 9.2 per cent, respectively, have boosted the real GDP growth rate in Q2 of FY 2025-26 to rise above 8 per cent, an official statement said.
The manufacturing sector clocked a strong growth rate of 9.1 per cent, while the construction segment grew at 7.2 per cent in the secondary sector during the quarter.
The growth rate of the financial, real estate and professional services in the tertiary sector jumped by a double-digit 10.2 per cent in Q2 of FY 2025-26.
The agriculture and allied sector posted a 3.5 per cent growth, while the electricity, gas, water supply, and other utility services sector grew by 4.4 during the second quarter.
Real private final consumption expenditure (PFCE) shot up by 7.9 per cent during Q2 of FY 2025-26 as compared to the 6.4 per cent growth rate in the corresponding period of the previous financial year, reflecting the higher incomes and employment being generated in the economy.
The acceleration in the growth rate in the second quarter comes on the back of a high growth rate of 7.8 per cent in the first quarter (April-June) of the current financial year.
The real GDP growth rate now works out to an impressive 8 per cent for the first half H1 (April-September) of FY 2025-26, as compared to the growth rate of 6.1 per cent in H1 of FY 2024-25, the figures showed.
The figures show that India continues to be the world’s fastest-growing major economy despite global headwinds such as the US tariff hikes.
The IMF has forecast India to be the only economy that is expected to clock an over 6 per cent growth rate in 2025-26 as the US tariff turmoil is expected to disrupt world trade and slow down the growth of the global economy.
The Indian economy showed signs of a further pick-up in momentum, despite continuing global headwinds. Available high-frequency indicators for October suggest a robust expansion in both manufacturing and services activities, supported by festive season demand and the ongoing positive impact of the GST reforms, according to the RBI monthly bulletin released on Monday.
Inflation has moderated to a historic low and remained well below the target rate. The fall in inflation was driven by a decline in food prices and the GST rate cut on goods and services prices, besides favourable base effects. Financial conditions remained benign, and the flow of financial resources to the commercial sector increased significantly from a year ago, the bulletin stated.
High-frequency indicators for October suggest further broadening of manufacturing activity and continued robust expansion in the services sector.
In the midst of continuing uncertainty on global trade policies and concerns about their domestic impact, the Indian economy continues to be resilient to external sector shocks, backed by strong services exports, robust remittance receipts, and benign oil prices. Foreign exchange reserves remain adequate to cushion adverse external shocks. External debt as a proportion of GDP remains low and stable. Further, the share of short-term debt in total external debt remains low, the RBI bulletin added.
–IANS