India’s GDP growth for the second quarter of FY 2025-26 (July–September) has surpassed expectations, outperforming even the Reserve Bank of India’s projections. According to data released by the Ministry of Statistics and Programme Implementation, the economy expanded by 8.2%, marking the highest quarterly growth in the last six quarters. This compares with 5.6% in the same quarter last year and 7.8% in the first quarter of the current fiscal.
The strong numbers indicate that neither the 50% import tariff imposed by U.S. President Donald Trump nor the recent GST restructuring had any major adverse impact on India’s economic momentum. In fact, the benefits of the recent GST rate rationalisation—implemented on September 22—are expected to be fully realised in the coming months, suggesting further support to growth.
GDP forecasts issued earlier had placed India’s expected growth lower: RBI at 7%, Reuters at 7.3%, ICRA at 7%, and India Ratings at 7.2%. The 8.2% surge comfortably exceeds all these projections.
India also retains its position as the world’s fastest-growing major economy. China grew at just 4.8%, while the expected growth for the United States hovers around 4%. Japan reported –0.4%, Germany registered 0%, and the United Kingdom grew by only 0.1%.
Quarterly Growth Trend (Last Six Quarters)
- 2024–25 (Apr–Jun): 6.5%
- 2024–25 (Jul–Sep): 5.6%
- 2024–25 (Oct–Dec): 6.4%
- 2024–25 (Jan–Mar): 7.4%
- 2025–26 (Apr–Jun): 7.8%
- 2025–26 (Jul–Sep): 8.2%
Manufacturing Leads the Comeback
A major driver of the impressive Q2 performance was the robust revival in the manufacturing sector, one of the pillars of India’s economy. Growth in this segment jumped from 2.2% in the same quarter last year to 9.1% this year.
In contrast, the agriculture sector saw growth moderate from 4.1% to 3.5%, while mining improved slightly from –0.4% to –0.04%. The construction sector slowed from 8.4% to 7.2%.
Utility services—including electricity, gas, and water supply—improved from 3% to 4.4%. The trade, hotels, transport, communication, and broadcasting segment grew from 6.1% to 7.4%.
Financial services, real estate, and professional services posted a strong 10.2% growth, compared to 7.2% a year earlier. Public administration, defence, and related services expanded from 8.9% to 9.7%.
GDP Value Touches ₹48.63 Lakh Crore
India’s GDP value for July–September 2025 stood at ₹48.63 lakh crore, up from ₹44.94 lakh crore in the corresponding quarter last year—an increase of 8.2%.
Gross Domestic Product (GDP) represents the total value of all goods and services produced within a country during a specific period—quarterly, half-yearly, or annually.
With both Q1 (7.8%) and Q2 (8.2%) exceeding expectations, India appears well-positioned to achieve full-year GDP growth above 7% in 2025–26.
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