This is a huge beat. India’s economic engine just accelerated, defying global trade pressure.
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The National Statistics Office (NSO) released the numbers, showing real Gross Domestic Product (GDP) grew by 8.2% in the July-September quarter (Q2) of FY 2025-26. That’s the highest growth in six quarters.
The surprise? This surge came despite pressure from US tariffs imposed by the Trump administration during the quarter. The economy performed well above most forecasts, reaffirming its position as the world’s fastest-growing major economy.
The Key Metrics
The numbers tell a story of accelerating momentum compared to last year and the previous quarter.
Q2 FY26 Real GDP: 8.2% (vs. 5.6% a year ago).
Previous Quarter (Q1 FY26): 7.8%.
First Half (H1) FY26 Growth: 8.0% (up from 6.1% in H1 FY25).
Q2 GDP at Constant Prices: ₹48.63 lakh crore.
Q2 Nominal GDP: 8.7% (₹85.25 lakh crore).
Sectoral Winners & Losers
The growth was largely broad-based, driven by the secondary and tertiary sectors, but agriculture lagged slightly.
| Sector | Growth Rate (Q2 FY26) | Notes |
| Tertiary (Services) | 9.2% | The standout performer, driven by services. |
| Financial, Real Estate, Professional Services | 10.2% | The single fastest-growing sub-sector. |
| Manufacturing | 9.1% | Massive expansion, recovering sharply from previous periods. |
| Secondary (Overall) | 8.1% | Includes manufacturing and construction. |
| Construction | 7.2% | Strong indicator of investment activity. |
| Private Consumption (PFCE) | 7.9% | Shows steady consumer demand, despite uneven monsoons. |
| Agriculture | 3.5% | Lags behind the industrial and service sectors. |
Prime Minister Narendra Modi called the numbers “very encouraging,” attributing the success to “pro-growth policies and reforms.” The government’s Chief Economic Advisor also confirmed the full-year FY26 GDP growth is now likely to be 7% or higher.
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