Post by : Rameen Ariff

India’s economy has demonstrated remarkable resilience in the second quarter of the 2025-26 fiscal year, posting a real GDP growth of 8.2%, according to data released by the National Statistics Office (NSO). This growth significantly surpasses the 5.6% recorded during the same period last year and exceeds the 7.8% growth seen in the first quarter of the current fiscal, signaling a robust economic trajectory despite external pressures such as US tariffs.

The latest figures underscore strong momentum across key sectors, with manufacturing, construction, and services leading the expansion. The GDP at constant prices reached Rs 48.63 lakh crore for the July-September quarter, compared with Rs 44.94 lakh crore a year earlier. Nominal GDP rose by 8.7% to Rs 85.25 lakh crore, reflecting a healthy price-adjusted growth across the economy.

Manufacturing growth accelerated to 9.1%, while construction expanded by 7.2%, pushing the broader secondary sector’s growth to 8.1%. Meanwhile, the services sector remained the most significant driver of the economy, with the tertiary sector growing 9.2%, buoyed by a 10.2% expansion in financial, real estate, and professional services. This strong performance highlights India’s continued emergence as a global hub for services, professional expertise, and industrial output.

Private consumption also maintained steady growth, with real private final consumption expenditure (PFCE) rising 7.9% in Q2 compared with 6.4% during the same quarter last year. This indicates sustained domestic demand even amid uneven monsoon conditions that affected agricultural output. Agriculture, by contrast, posted more modest growth of 3.5%, while utilities such as electricity, gas, and water supply expanded 4.4%, showing a temporary slowdown in these sectors.

Cumulatively, India recorded an 8% GDP growth rate in the first half of FY26, up from 6.1% during the corresponding period of the previous year. Real Gross Value Added (GVA) growth came in at 8.1% for the second quarter, reflecting broad-based expansion across multiple industries.

Analysts and policymakers view these numbers as a strong affirmation of India’s position as the fastest-growing major economy in the world. The healthy growth trajectory sets a positive tone for the second half of the fiscal year, with continued monitoring of inflation, consumption patterns, and global demand shaping future policy decisions. India’s sustained economic momentum, driven by manufacturing and services, not only reinforces its global growth credentials but also signals resilient domestic demand and industrial expansion heading into FY26.

This comprehensive performance highlights India’s ability to weather external challenges while maintaining strong internal economic dynamics, making it an attractive destination for investors and business activity worldwide.

#Business & economy