India’s economy grew at a robust 8.2 per cent in the second quarter (July–September) of the current financial year, up from 5.6 per cent in the same quarter of FY 2024-25, according to data released by the Ministry of Statistics on Friday, reported the IANS.
The secondary and tertiary sectors have driven this growth, with expansion rates of 8.1 per cent and 9.2 per cent, respectively. The manufacturing sector posted a strong growth of 9.1 per cent, while construction grew by 7.2 per cent in Q2. In the services segment, financial, real estate, and professional services recorded a double-digit growth of 10.2 per cent, according to the IANS.
Agriculture and allied sectors grew by 3.5 per cent, while utilities such as electricity, gas, and water supply expanded by 4.4 per cent during the quarter. Real private final consumption expenditure (PFCE) also rose sharply by 7.9 per cent, reflecting higher incomes and employment generation.
The acceleration follows a 7.8 per cent growth in Q1, taking the real GDP growth for the first half of FY 2025-26 to an impressive 8 per cent, compared to 6.1 per cent in H1 of FY 2024-25.
Despite global headwinds, including US tariff hikes, India remains the world’s fastest-growing major economy. The IMF expects India to be the only major economy to achieve over 6 per cent growth in FY 2025-26.
High-frequency indicators for October suggest continued expansion in manufacturing and services, boosted by festive season demand and the positive effects of GST reforms. Inflation has moderated to historic lows, remaining well below target, driven by falling food prices, GST cuts, and favourable base effects, as per the IANS.
Financial conditions remain stable, with increased credit flows to the commercial sector. The RBI also noted that foreign exchange reserves are sufficient to buffer against external shocks, while external debt levels remain low and sustainable, the news agency reported.
These indicators highlight India’s resilience to global economic uncertainties, underpinned by strong services exports, remittance inflows, and benign oil prices.
Meanwhile, PM Modi stated that the government will continue to advance reforms.
In a post on X, PM Modi wrote, “The 8.2 per cent 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.”
(with IANS inputs)