India’s economy posted a sharp rebound in the July-September quarter of FY26, with real GDP growing 8.2% year-on-year, marking the strongest expansion in six quarters.
The data shows that India outpaced expectations and strengthened its position as one of the world’s fastest-growing major economies.
The economy accelerated despite global challenges, including rising US tariffs and restrained government spending.
Strong domestic demand powered the upswing, with private consumption jumping 7.9%, indicating rising household confidence and steady spending momentum.
Manufacturing expanded 9.1%, and construction grew 7.2%, reflecting strong industrial activity.
Services, real estate, and export-linked sectors also reported healthy gains.
Broad-Based Growth Momentum
Analysts said these numbers signal a broad-based recovery and renewed economic confidence.
They highlighted rural demand, stable consumption patterns, and manufacturing resilience as the quarter’s key growth engines.
However, economists warned that maintaining this pace may be difficult in the coming quarters.
They noted that weak GDP deflators inflated the growth figure. They said subdued price pressures, not just output strength, boosted the numbers.
Prime Minister Narendra Modi welcomed the GDP surge, calling it proof of India’s resilience and the success of reforms aimed at boosting investment, innovation, and inclusive growth.
He said the nation is ‘moving decisively toward long-term economic strength’, supported by stable macroeconomic policies and expanding global partnerships.
PM Modi emphasised that India’s digital infrastructure and manufacturing push continue to shape the nation’s growth trajectory.
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
The government stated that the 8.2% figure underscores the potential of the Indian economy and reinforces its confidence in achieving strong full-year growth.
With manufacturing, consumption, and services all contributing meaningfully, India remains firmly on track as a global economic bright spot.
This quarter’s results reaffirm India’s ability to grow through disruption, sustain demand, and support industry.
Analysts say the numbers solidify the country’s reputation as a resilient, high-growth economy heading into the next fiscal year.
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