New Delhi, Nov 28: India registered a six-quarter high GDP growth of 8.2 per cent in the July–September quarter of 2025-26, buoyed by a rebound in manufacturing and double-digit expansion in services. Prime Minister Narendra Modi hailed the performance as evidence of the nation’s “hard work and enterprise,” promising that the reform push would continue.
The fresh data from the National Statistics Office show India retaining its place as the world’s fastest-growing major economy, well ahead of China’s 4.8 per cent expansion in the same quarter. The pickup compares with 7.8 per cent in the previous three months and 5.6 per cent a year earlier.
In a post on X, Modi said the growth demonstrates the impact of policies focused on economic expansion, adding that the government would “strengthen Ease of Living for every citizen.”
The manufacturing sector led the advance, expanding 9.1 per cent compared with 2.2 per cent a year ago, as factories ramped up production ahead of the festival season following the GST rate cut that took effect on September 22. Services including banking and real estate grew 10.2 per cent, up from 7.2 per cent last year.
However, agriculture recorded a slower 3.5 per cent growth amid concerns over farm output moderation.
Economists sounded cautiously optimistic about the outlook. Aditi Nayar, Chief Economist at ICRA, noted that the print “surpassed market expectations,” supported in part by statistical discrepancies that lifted the headline number. She warned of possible headwinds ahead, including limited fiscal room and global trade uncertainties, though the full-year expansion now “appears set to materially exceed 7 per cent.”
The Reserve Bank of India had earlier revised its FY26 growth forecast to 6.8 per cent. With real GDP up 8 per cent in the first half alone, analysts said the official target could be overtaken.
The latest figures put real GDP at ₹48.63 lakh crore for Q2, up from ₹44.94 lakh crore a year earlier, while nominal GDP rose at a softer 8.7 per cent as the deflator slipped to its lowest level since 2019. Deloitte India economist Rumki Majumdar said lower nominal growth complicates fiscal calculations, potentially making deficit targets harder to meet.
Gross Fixed Capital Formation increased 7.3 per cent, signalling steady investment momentum. Yet, the jump in statistical discrepancies to ₹1.62 lakh crore drew attention from experts tracking the reliability of expenditure estimates.
As the festive spending wave spills into the current quarter and GST 2.0 reforms feed through, analysts expect upgraded full-year projections — though with a watchful eye on global economic risks and domestic consumption trends.
