India's GDP grows 8.2% in Q2 led by manufacturing and services
India's GDP grows 8.2% in Q2 led by manufacturing and services
India clocks 8.2% GDP growth in Q2, buoyed by manufacturing and services, with nominal growth at 8.7% amid policy momentum.
India’s economy posted a robust 8.2% year-on-year expansion in the second quarter of the current financial year, July–September, marking a six‑quarter high. The growth was broad-based, with manufacturing and services leading the upturn and lifting the first-half growth to around 8%.
Nominal GDP rose 8.7% in the same period, signaling that while inflation has cooled, underlying activity is still not running at double-digit nominal pace. Economists note the real growth print outpaced expectations, even as the price deflator remained subdued, underscoring strong consumption and investment momentum.
Prime Minister Narendra Modi called the numbers very encouraging, saying they reflect pro-growth policies and reforms that have boosted productivity and ease of living for citizens. Finance Minister Nirmala Sitharaman stressed that the momentum comes from sustained fiscal consolidation, targeted public investment, and reforms that have strengthened productivity and ease of doing business. She also pointed to high-frequency indicators pointing to continued momentum and broad-based consumption growth.
Analysts from major banks pointed out that the 8.2% real growth print, paired with an 8.7% nominal growth rate, suggests tepid underlying activity when inflation shifts are weighed, which could affect fiscal deficit targets pegged to nominal growth. Still, many remain upbeat about the trajectory, noting India is among the fastest-growing major economies and could cross the $4 trillion nominal GDP milestone by year-end if policy momentum holds.
Cover image source: Indian economy grows 8.2% in Q2 2025-26 🔗
