India’s GDP grows by 8.2% in Q2 of FY 2025-26 amid US tariffs, highest in six quarters

India’s real GDP is estimated to have increased by 8.2 per cent in the July-September quarter of fiscal 2025-26, compared to the growth rate of 5.6 per cent in the same quarter of the previous fiscal, official data released on Friday showed. The data comes despite the impact of US tariffs on the world’s fourth-largest economy. The Indian economy recorded high growth for six quarters in the July-September period. GDP growth in the second quarter was 7.8 percent over the previous three months and better than 5.6 percent in the same period a year earlier.

The National Statistical Office (NSO), Ministry of Statistics and Program Implementation (MoSPI) has published the Quarterly Gross Domestic Product (GDP) Estimates for the July-September quarter.
Today’s data showed that India’s nominal GDP grew by 8.7 per cent in the September quarter.

Sectoral growth

The manufacturing sector, which accounts for 14 percent of the country’s Gross Domestic Product, increased by 9.1 percent in the second quarter, compared to 2.2 percent in the same quarter last fiscal year. In the April-June quarter, India’s real GDP grew by 7.8 per cent, above the growth rate of 6.5 per cent in the same quarter of the previous fiscal year. India’s nominal GDP increased by 8.8 percent in the said quarter.

Secondary (8.1%) and Tertiary Sector (9.2%) increased the Real GDP growth rate to over 8.0% in the second quarter of FY 2025-26. In the Secondary Sector, Manufacturing (9.1%) and Construction (7.2%) recorded growth of over 7.0% at Constant Prices in the quarter. In the Tertiary Sector, Finance, Real Estate and Professional Services (10.2%) maintained a significant growth rate at Constant Prices in the 2nd quarter of FY 2025-26.

Agriculture and Allied (3.5%) and Electricity, Gas, Water Supply and Other Utilities Sector (4.4%) saw a moderate real growth rate in Q2 of FY 2025-26. Real Private Final Consumption Expenditure (PFCE) reported a growth rate of 7.9% in the second quarter of FY 2025-26 compared to a growth rate of 6.4% in the same period of the previous fiscal. Real GDP recorded a growth rate of 8.0% in the first half of FY 2025-26 (April-September) compared to a growth rate of 6.1% in the first half of FY 2024-25.

In 2024-25, the Indian economy grew by 6.5 percent in real terms. The Reserve Bank of India had projected 6.5 percent GDP growth for the financial year 2024-25. In 2023-24, India’s GDP grew at an impressive 9.2 percent, remaining the fastest growing major economy.

According to official data, the economy grew by 8.7 percent and 7.2 percent in 2021-22 and 2022-23, respectively. Earlier this year, the World Bank said India needs to grow at an average rate of 7.8 percent over the next 22 years to achieve its target of becoming a developed country by 2047. But the World Bank has argued that getting there will require reforms, and their implementation will need to be as ambitious as the target itself.

(With inputs from ANI)