India’s GDP recorded a robust 8.2% growth in the second quarter (July–September) of FY 2025–26, marking the fastest expansion in six quarters and exceeding market expectations. The performance comes even before the full impact of the recently announced GST rate cuts has been reflected in the economy.
The secondary sector, which includes manufacturing and industry, grew by around 8.1%, while the tertiary sector, encompassing services such as trade, finance, and transport, expanded by approximately 9.2%. The primary sector, which covers agriculture, forestry, and mining, posted a modest growth of 3.1%.
Analysts said the growth was supported by strong rural demand, increased government spending, and early export shipments. Consumption showed an uptick ahead of the festive season, partially driven by expectations of lower tax rates under the GST regime.
Despite the upbeat headline numbers, some areas of the economy remain subdued. Urban demand and private investment have yet to pick up significantly, suggesting that growth is currently more dependent on government-led and rural spending.
Economists said sustaining this momentum in the coming months will require a revival in private sector investment and broader consumption across both rural and urban areas.
The Q2 growth indicates that India’s economy continues to show resilience in the face of global uncertainties. If domestic consumption, private investment, and exports continue to strengthen, the country could maintain a healthy growth trajectory in the second half of the fiscal year.
Overall, the numbers reflect a combination of strong rural activity, government support, and industrial recovery, showing that the economy is well-positioned to benefit from policy measures such as GST cuts while navigating ongoing challenges in urban markets and private investment.
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