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India's Economy Surges 8.2% in Q2 FY26!
28 Nov, 2025
Summary
- Indian real GDP grew by an estimated 8.2% in the July-September quarter.
- Manufacturing sector rebound significantly boosted economic growth.
- Higher US tariffs pose a risk, but services exports offer resilience.
India's real GDP experienced an estimated growth of 8.2% during the July-September quarter of FY26, significantly outpacing the 5.6% growth in the same period last fiscal year. This impressive economic expansion was largely driven by a strong resurgence in the manufacturing sector, alongside sustained momentum in services and healthy private consumption.
Experts note that while government expenditure contracted, the economy is expected to benefit from robust consumption demand in the second half of the fiscal year, boosted by factors like GST rate cuts and festive spending. The manufacturing sector has recovered, and both agriculture and services continue to grow steadily.
Despite this positive trajectory, concerns linger regarding the impact of higher US tariffs, which could impede growth if trade deals face further delays. However, the resilience of services exports is anticipated to partially mitigate these risks, leading some to revise growth forecasts upwards for FY26.
