New Delhi, Nov 28: India posted a six-quarter high GDP growth of 8.2% in the July–September quarter, driven mainly by stronger factory output and a sharp pickup in services, even as agriculture lost pace, according to data released Thursday by the National Statistics Office.
The Q2 growth compares with 7.8% in the previous quarter and 5.6% a year earlier. The performance helped India retain its position as the world’s fastest-growing major economy, far outpacing China’s 4.8% during the same period.
Manufacturing expanded 9.1%, a significant rise from 2.2% a year earlier. Officials attributed the jump to higher production ahead of festival-season demand following Prime Minister Narendra Modi’s Independence Day announcement of a GST rate cut effective September 22. Services, including finance and real estate, also posted strong gains at 10.2%, up from 7.2% last year.
Agriculture, however, slowed to 3.5% from 4.1%.
Icra Chief Economist Aditi Nayar said the growth print “significantly surpassed expectations,” noting that Q2’s 8.2% came despite forecasts of moderation. “Discrepancies played an important role in bumping up the GDP growth in Q2 compared to the preceding quarter,” she said.
Nayar added that an “adverse base, the potential negative impact of US tariffs and limited headroom for capital spending” may temper growth going forward, though full-year expansion “now appears set to materially exceed 7%.” She also noted that the stronger-than-expected print reduces the chances of a December rate cut.
The NSO said GDP in the first half of FY26 stands at 8%, up from 6.1% last year, making it likely that India will surpass the government’s full-year projection of 6.3–6.8%.
Nominal GDP rose 8.7% in Q2, while private consumption increased 7.9%, up from 6.4% last year. Gross fixed capital formation grew 7.3%, and discrepancies in GDP calculations surged to ₹1.62 lakh crore.
Deloitte India economist Rumki Majumdar said the festive quarter and momentum from “GST 2.0” could push estimates higher. However, she noted that the GDP deflator has fallen to its lowest since 2019, creating challenges for fiscal deficit and debt targets. “It will be harder for the government to meet its fiscal deficit goals,” she said.
