India’s economy convincingly surpassed expectations in the July–September quarter of fiscal year 2025-26, posting a real Gross Domestic Product (GDP) growth rate of 8.2 % year-on-year, according to data from the Ministry of Statistics and Programme Implementation (MoSPI).

Key Highlights

• India’s GDP grew 8.2% in Q2 FY26, surpassing forecasts and reflecting strong manufacturing and services performance.
• Robust private consumption and resilient domestic demand helped India maintain its position as the fastest-growing major economy.

This growth milestone marks the fastest rate in six quarters, increasing from 7.8 % in Q1 FY26 and up from just 5.6 % in the same period a year earlier.

The acceleration was powered by strong expansion in both the secondary and tertiary sectors. Manufacturing surged 9.1 % year-on-year, while construction grew 7.2 %. The services segment — encompassing financial, real-estate and professional services — recorded growth of around 10.2 %.

Meanwhile, private consumption also remained a key driver, increasing by 7.9 % compared to the previous year.

Despite the bright print, the government consumption component declined by 2.7 % in the quarter, and exports grew more modestly than imports — pointing to some unevenness in the demand profile.

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Analysts highlight that the strong result reflects underlying resilience in India’s domestic economy, especially given external headwinds such as elevated U.S. tariffs and global trade uncertainty. However, they caution that sustaining growth at this pace will be challenging in the coming quarters, with investment activity still moderate and global risks looming.

Overall, the latest data underscore India’s status as one of the fastest-growing major economies globally, offering a promising backdrop for corporate earnings, investment flows and policymaker optimism for FY26.