India's Q2 GDP hits 8.2% Growth, Beats Forecasts
India's Q2 GDP hits 8.2% Growth, Beats Forecasts
India posts 8.2% real GDP growth in Q2 FY26, driven by manufacturing and services; economists weigh the momentum ahead.
India’s economy surged to 8.2% real GDP growth in the second quarter of FY2025-26, marking a strong rebound from the 5.6% expansion a year earlier. The quarterly figure sits above estimates and signals broad-based momentum across sectors.
Manufacturing led the charge with a 9.1% growth rate, while the secondary sector rose by 8.1% and the tertiary sector by 9.2%, underscoring a robust services and industry mix. Agriculture and allied activities rose modestly at 3.5%, and utilities (electricity, gas, water, and other services) grew around 4.4%, highlighting a diverse growth engine.
Private Final Consumption Expenditure grew 7.9% in Q2, contributing substantially to overall activity, as households continued to spend in the face of ongoing global headwinds. On a six-month basis (April-September 2025), real GDP expanded 8.0%, compared with 6.1% in the same period a year earlier, signaling sustained momentum.
Economists had penciled in a more tempered pace, with polls suggesting around 7.3% growth and the RBI estimating roughly 7.0%. The actual outturn suggests the economy is navigating external pressures while domestic demand remains resilient.
Looking ahead, the strong Q2 performance raises expectations for the second half of FY26, though policymakers and observers caution that global uncertainties could temper further gains. Still, the current numbers point to a supportive macro backdrop for investment, employment, and consumer confidence, even as the path remains nuanced and dependent on external factors.
Cover image source: India's GDP growth rate jumps to 8.2% in Q2 FY26 from 5.6% last year, says MoSPI 🔗
