India’s Economy Surges with 8.2% GDP Growth in Q2 FY25-26
India’s economy demonstrated robust momentum with real GDP growing at 8.2% in the July-September quarter of FY 2025-26, significantly higher than the 5.6% growth recorded in the same quarter last year, according to official data released on November 28, 2025.
Key Takeaways
- Real GDP growth accelerates to 8.2% in Q2 FY25-26
- Nominal GDP expands at 8.7% during the same quarter
- Services and manufacturing sectors drive strong performance
- First-half growth reaches 8.0% for FY25-26
Sectoral Performance
The secondary sector grew by 8.1% while the tertiary sector expanded by 9.2%, pushing overall growth above the 8% mark. Manufacturing led with 9.1% growth, followed by construction at 7.2%. Financial, real estate and professional services recorded an impressive 10.2% expansion.
Agriculture and allied sectors showed moderated growth at 3.5%, while electricity, gas, water supply and other utility services grew at 4.4%.
Consumption and Half-Yearly Performance
Real Private Final Consumption Expenditure (PFCE) grew by 7.9% in Q2 FY25-26, up from 6.4% in the same period last year. For the first half (April-September) of FY 2025-26, real GDP registered 8.0% growth compared to 6.1% in H1 of FY 2024-25.
Historical Context and Future Outlook
In the previous fiscal year 2024-25, the Indian economy grew by 6.5%, while 2023-24 saw an impressive 9.2% expansion, maintaining India’s position as the fastest-growing major economy.
The World Bank has indicated that India needs to maintain an average growth of 7.8% over the next 22 years to achieve its developed nation aspirations by 2047. The Economic Survey 2024-25 emphasized that realizing the ‘Viksit Bharat’ vision would require sustained growth of around 8% for the next decade or two.
