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India's GDP Surges to 8.2% in Q2, Beating All Forecasts
28 Nov
Summary
- India's Q2 FY26 GDP grew 8.2%, exceeding forecasts and hitting a six-quarter high.
- Manufacturing and consumption growth were key drivers of the unexpected economic surge.
- Experts predict full-year growth may surpass 7%, potentially impacting RBI rate cuts.
India's economy demonstrated remarkable resilience and strength in the second quarter of FY26, with GDP growth accelerating to an unexpected 8.2%. This figure not only surpassed the median forecast of 7.2% from economists but also outpaced the Reserve Bank of India's projection of 7%. The robust expansion was primarily fueled by a strong performance in the manufacturing sector and a healthy uptick in private consumption.
Experts attribute this accelerated growth to dynamic manufacturing output and consistent demand. Projections now indicate that India's GDP growth for the full financial year could potentially exceed 7%, even with a slight moderation in the latter half. This positive economic outlook suggests a vibrant economy, with some analysts suggesting growth could reach as high as 7.5% for the fiscal year.
While the strong GDP figures provide a positive outlook for the economy, they may influence the Reserve Bank of India's monetary policy, potentially delaying any interest rate cuts. The market sentiment, however, remains cautiously optimistic, with near-term movements likely influenced by trade deal developments and upcoming corporate earnings reports.
