India’s Growth Engine Roars: Q2 GDP Climbs to a Six-Quarter High
India’s economy is experiencing a powerful upswing. The latest data for the July–September quarter of FY 2025-26 reveals that the country’s GDP expanded by an impressive 8.2%, marking the fastest growth in a year and a half. For a nation navigating global uncertainty, volatile commodity prices, and shifting geopolitical winds, this acceleration signals a moment of renewed confidence.
A Quarter That Outperformed Expectations
Most analysts had predicted that India’s growth would settle near the 7% mark, especially after a strong April–June performance. Instead, the economy surprised yet again, continuing its four-quarter streak of rising growth. Compared to the 5.6% recorded during the same quarter last year, the improvement is remarkable.
Nominal GDP also strengthened, growing by 8.7%, adding further depth to the economic momentum.
The Sectors Steering the Upswing
Behind the headline number lies a broad-based revival:
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Manufacturing surged by 9.1%, its best show in six quarters.
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Construction remained strong with 7.2% growth, reflecting continued infrastructure investments.
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Financial, Real Estate & Professional Services expanded by a striking 10.2%, underscoring the vitality of India’s service-led growth.
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Agriculture grew at a steady 3.5%, while utilities posted 4.4% growth.
Together, the Secondary Sector (8.1%) and Tertiary Sector (9.2%) formed the backbone of this quarter’s expansion.
Consumer demand, the heartbeat of India’s economy, also improved. Private consumption rose by 7.9%, fuelled partly by positive sentiment and lower GST rates on several items.
Voices From the Top
Prime Minister Narendra Modi called the numbers “very encouraging,” attributing the growth to a blend of reforms, policy support, and public resilience. He emphasized that the government will continue to push for reforms that strengthen economic foundations and improve the ease of living.
Chief Economic Advisor V. Anantha Nageswaran also revised India’s full-year outlook upward, projecting at least 7% growth, higher than earlier estimates. With the second-quarter performance far exceeding expectations, the Reserve Bank of India may also upgrade its forecast in the upcoming Monetary Policy Committee meeting.
A Strong First Half Sets the Tone
For the first half of FY 2025-26, GDP grew by 8.0%, compared to 6.1% during the same period last year. This sustained momentum positions India as one of the fastest-growing major economies in the world.
Why This Growth Matters
The numbers reflect more than just statistical improvement — they tell a story of structural resilience:
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A manufacturing sector regaining power
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A services sector expanding at near double-digit rates
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Infrastructure investment continuing steadily
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Households demonstrating robust spending power
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Policy stability supporting long-term growth
While some sectors, such as agriculture and utilities, grew at a gentler pace, India’s broader economic picture remains optimistic and forward-looking.
What Comes Next?
With the National Statistics Office preparing to shift the GDP base year to 2022-23, future estimates may undergo revisions. But for now, the message is clear: India’s economic momentum is real, broad-based, and strengthening.
If the current pace continues, FY 2025-26 could easily end with growth well above the 7% threshold — keeping India firmly positioned as a global engine of economic expansion.