India’s Real GDP Surges to 8.2% Growth in Q2 FY26, Achieving a Six-Quarter High and Exceeding Expectations
India’s economy has shown remarkable resilience, with the real GDP growth for the second quarter of the fiscal year 2025-26 soaring to 8.2%. This figure not only surpasses economists’ expectations but also marks the highest growth rate recorded in six quarters. With this performance, India continues to hold its position as the fastest-growing major economy globally, outpacing the projected growth rates of 7.3% and 7% by various analysts and the Reserve Bank of India, respectively.
The impressive 8.2% growth in real GDP for Q2 FY 2025-26 can be attributed to robust performances across various sectors. The Secondary sector, which includes manufacturing and construction, recorded a growth rate of 8.1%. Notably, the manufacturing sector achieved a remarkable growth of 9.1%, while construction grew by 7.2%, both measured at constant prices. Meanwhile, the Tertiary sector, which encompasses services, demonstrated even stronger momentum, with a growth rate of 9.2%. Within this sector, Financial, Real Estate, and Professional Services surged ahead with a significant growth of 10.2% at constant prices.
In contrast, the Agriculture and Allied activities sector experienced modest growth at 3.5%. The Electricity, Gas, Water Supply, and Other Utility Services sector also showed a healthy increase of 4.4%. These diverse performances highlight the multifaceted nature of India’s economic growth, showcasing strengths in both industrial and service-oriented sectors.
Consumption and Investment Trends
Private consumption has also played a crucial role in driving economic growth. Real Private Final Consumption Expenditure grew by 7.9% in Q2 FY 2025-26, a notable increase from the 6.4% growth recorded during the same period last year. This uptick in consumer spending reflects growing confidence among households and indicates a positive trend in economic activity.
The first half of FY 2025-26 saw an overall real GDP growth of 8.0%, a significant improvement from the 6.1% growth recorded in the first half of the previous fiscal year. The real GDP at constant prices reached ₹48.63 lakh crore in Q2 FY 2025-26, up from ₹44.94 lakh crore in Q2 FY 2024-25. The nominal GDP for the same quarter stood at ₹85.25 lakh crore, marking an 8.7% increase from ₹78.40 lakh crore in the previous year.
Overall Economic Indicators
The Gross Value Added (GVA) estimates for Q2 FY 2025-26 reached ₹44.77 lakh crore, reflecting an 8.1% growth from ₹41.41 lakh crore in Q2 FY 2024-25. Similarly, the nominal GVA was estimated at ₹77.69 lakh crore, showing an 8.7% increase from ₹71.45 lakh crore in the same quarter last year.
For the first half of FY 2025-26, the real GDP estimates stood at ₹96.52 lakh crore, indicating an 8.0% growth from ₹89.35 lakh crore in H1 FY 2024-25. The nominal GDP for this period was calculated at ₹171.30 lakh crore, reflecting an 8.8% rise from ₹157.48 lakh crore in H1 FY 2024-25. The GVA for H1 2025-26 reached ₹89.41 lakh crore, marking a 7.9% increase from ₹82.88 lakh crore in H1 FY 2024-25, while the nominal GVA was estimated at ₹155.94 lakh crore, showing an 8.8% growth from ₹143.39 lakh crore in the previous year.
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