New Delhi: India posted an 8.2% GDP growth rate in the second quarter of FY2025-26, its strongest quarterly performance in six quarters, according to figures released by the National Statistics Office (NSO). With this sharp uptick, India continues to outpace other major economies, including China, which reported 4.8% growth during the same period.
The improvement was largely fueled by a notable rise in manufacturing activity, which climbed 9.1% compared to 2.2% a year ago. Higher festive season demand and a recent reduction in GST rates contributed to the sector’s rebound. The services industry also recorded strong momentum, growing 10.2% against last year’s 7.2%, led by banking and real estate.
In contrast, agriculture saw slower expansion, rising 3.5% versus 4.1% in the previous year, as delayed monsoon rains affected output.
Real GDP for the July–September quarter reached ₹48.63 lakh crore, while nominal GDP rose 8.7% to ₹85.25 lakh crore. With growth for the first half of FY26 now averaging 8%, well above the 6.1% recorded during the same period last year, the likelihood of exceeding the official growth projection of 6.3% to 6.8% has strengthened.
Economists described the numbers as encouraging but urged caution. ICRA Chief Economist Aditi Nayar noted that the results came in higher than expected but pointed to soft government spending, a low GDP deflator, and external uncertainties as potential headwinds. Deloitte economist Rumki Majumdar added that recent GST reforms and festive-driven demand could help sustain momentum into the third quarter, although slow nominal growth may complicate fiscal deficit management.
While the global outlook remains uncertain, policymakers believe that ongoing reforms and continued investment activity will help support India’s economic resilience in the months ahead.
