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GDP Surprise: Indian Economy Grows At 6-Quarter High Of 8.2% In Q2 FY26 On Robust Manufacturing
GDP Surprise: Indian Economy Grows At 6-Quarter High Of 8.2% In Q2 FY26 On Robust Manufacturing
India GDP Q2 Growth Data: In a surprise, India's gross domestic product (GDP) grew at a six-quarter high of 8.2 per cent in the second quarter ended September 30, 2025 (Q2 FY26) amid robust growth in manufacturing, according to the latest official data released on Friday. This is far higher than expectations, as analysts had estimated the Q2FY26 economic growth in the range of 7% to 7.5%.
With this, India's economy remains the fastest-growing economy in the world.
The Indian economy had grown at 5.6% in the September 2024 quarter (Q2 FY25), which was a seven-quarter low, and rebounded to 7.8% in the previous quarter (Q1 FY26).
“Real GDP or GDP at Constant Prices in Q2 of FY 2025-26 is estimated at Rs 48.63 lakh crore, against Rs 44.94 lakh crore in Q2 of FY 2024-25, registering a growth rate of 8.2%," the National Statistical Office said in a statement on November 28.
Nominal GDP, which factors in inflation, has witnessed a growth rate of 8.7% in Q2 of FY 2025-26.
Real GVA, which is GDP minus net product taxes and reflects growth in supply, is estimated at Rs 44.77 lakh crore in Q2 FY26, against Rs 41.41 lakh crore in Q2 of FY 2024-25, registering a growth rate of 8.1%, according to the latest data released by the NSO.
Prime Minister Narendra Modi welcomed the latest economic data, calling the 8.2% GDP growth in the second quarter of 2025–26 “very encouraging."
The Prime Minister said the numbers “reflect the impact of our pro-growth policies and reforms" and highlight “the hard work and enterprise of our people."
“Our government will continue to advance reforms and strengthen Ease of Living for every citizen," PM Modi added.
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.— Narendra Modi (@narendramodi) November 28, 2025
Sector-Wise Q2 GDP Growth
The manufacturing sector grew at a surprise rate of 9.1% in Q2 FY26, while the agriculture sector grew 3.5%. The trade, hotels, transport, communication & services related to broadcasting grew 7.4%.
The secondary (8.1%) and tertiary sector (9.2%) has boosted the real GDP growth rate in Q2 of FY 2025-26 to rise above 8.0%. Financial, real estate & professional services (10.2%) in the tertiary sector has sustained a substantial growth rate at constant prices in Q2 of FY 2025-26. Agriculture and allied (3.5%) and electricity, gas, water supply and other utility services sector (4.4%) has seen moderated real growth rate during Q2 of FY 2025-26.
Q2 GDP Data: Expenditure & Investments Growth
Government Final Consumption Expenditure (GFCE) has decreased, registering a 2.7% fall in Nominal terms during Q2 of FY 2025-26, over the growth rate of 4.3% in Q2 of FY 2024-25, according to the latest data.
Real Private Final Consumption Expenditure (PFCE) has reported 7.9% growth rate during Q2 of FY 2025-26 as compared with the 6.4% growth rate in the corresponding period of the previous financial year.
Gross Fixed Capital Formation (GFCF) has recorded 7.3% growth rate at Constant Prices, over the growth rate of 6.7% in Q1 of FY 2024-25.
In 2024-25, the Indian economy grew by 6.5 per cent in real terms. The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2024-25. In 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy. According to official data, the economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23.
Earlier this year, the World Bank said India will need to grow by 7.8 per cent on average over the next 22 years to achieve its aspirations of becoming a developed country by 2047. However, the World Bank asserted that getting there would require reforms and their implementation to be as ambitious as the target itself.
To realise the vision of ‘Viksit Bharat', a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25 tabled on January 31 this year asserted.
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India has made quite a turnaround, climbing the ladder of economic growth. This can be gauged from the progress in terms of size of economy. India was placed 11th in 2013-14 and is now the fourth-largest economy. India has surpassed many countries in terms of economic size over the past decade and now needs to continue making progress in terms of per capita income.
In 2013, India was placed in the league of ‘Fragile 5' economies. The term ‘Fragile 5' was coined by a Morgan Stanley analyst and referred to then to a set of five emerging countries, including India, whose economies were not doing well. The other four countries were Brazil, Indonesia, South Africa, and Turkey. Today, India is one of the fastest-growing major economies.
Source: News18
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