India's 8.2% Q2 GDP print has beaten forecasts despite pressure from US tariffs, with manufacturing and services driving momentum and reaffirming the nation's place as the fastest-growing major economy.
Overall, the first half of FY26 has delivered an 8% GDP growth rate, up from 6.1% in the first half of the previous financial year.
Real GVA growth during Q2 came in at 8.1%, supported by broad-based expansion across key industries.
India’s economic engine picked up more speed in the September quarter, with official data showing that real GDP grew 8.2% in Q2 of FY 2025-26, well above the 5.6% recorded a year ago.
This is stronger than the 7.8% posted in the first quarter, and the highest in six quarters.
The surge also beat most forecasts, even as the economy faced pressure from US tariffs.
The numbers, released by the National Statistics Office (NSO), point to strong momentum led by manufacturing, construction, and a robust services sector.
GDP at constant prices stood at Rs 48.63 lakh crore in the July-September quarter, up from Rs 44.94 lakh crore a year ago. Nominal GDP grew 8.7% to Rs 85.25 lakh crore.
Prime Minister Narendra Modi called the numbers "very encouraging," thanking the "hard work and enterprise" of Indians.
The stronger-than-expected print reinforces India’s position as the world’s fastest-growing major economy and sets an upbeat tone heading into the second half of the year, with policymakers closely watching inflation, consumption trends and global demand conditions.
"The 8.2% GDP growth in Q2 of 2025-26 is very encouraging. It reflects the impact of our pro-growth policies and reforms. It also reflects the hard work and enterprise of our people. Our government will continue to advance reforms and strengthen Ease of Living for every citizen," he tweeted.
A big part of the acceleration came from the secondary and tertiary sectors. Manufacturing expanded 9.1%, construction grew 7.2%, and the broader secondary sector clocked growth of 8.1%.
The services side of the economy remained the standout performer. The tertiary sector grew 9.2%, driven by a strong 10.2% expansion in financial, real estate and professional services. Private consumption also showed healthy traction. Real private final consumption expenditure (PFCE) grew 7.9% in Q2, compared to 6.4% in the same period last year, signalling steady demand despite uneven monsoon conditions.
Agriculture, however, lagged behind. The farm sector grew just 3.5%, and utilities such as electricity, gas and water supply grew 4.4%, reflecting a softer patch for these segments.
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