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India’s GDP grew 8.2% in Q2 FY26, the fastest in six quarters, beating estimates
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Manufacturing output rose 9.1%, while agriculture grew 3.5%, mining remained negative
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Private consumption grew 7.9%, government expenditure fell 2.7%, private investment up 7.3%
India's economy expanded by 8.2% in the July-September quarter of the current financial year, the fastest growth in six quarter, led by strong manufacturing and services output. The Bloomberg estimate was 7.4%.
The GDP print in September quarter is far higher than 5.6% during Q2 of FY25 and 7.8% in the June quarter, as per data released Ministry of Statistics on Friday.
"The confluence of stable inflation, sustained public capex, and reform momentum positions the economy to navigate risks, as reflected in upward revisions to FY26 GDP growth projections by various agencies," the Chief Economic Advisor V Anantha Nageswaran told reporters at a press conference in New Delhi.
Lower inflation narrowed the gap between nominal and real growth rates. The nominal GDP which grew 8.7% compared to 8.3% in the year-ago period.
The Gross Value Added (GVA), calculated as the value of output minus the value of the intermediate goods and raw materials, grew 8.1% compared to the estimated 7.3%.
GDP Internals
Primary Sector: 3.1%
Secondary Sector (8.1%): Manufacturing (9.1%), Construction (7.2%)
Tertiary Sector: 9.2%
Agriculture and allied services rose 3.5%, compared to 4.1% last year. Mining growth remained in negative territory.
Manufacturing surged to 9.1% from 2.2% last year, while construction slipped to 7.2% from 8.4%.
The rise in manufacturing activity comes amid US tariff pressures on the economy. Washington's 50% import duty on most Indian goods came into force in August and caused a decline in exports in the subsequent months.
Investment, Consumption Jumps
Private Final Consumption Expenditure, that fuels over one-third of India's economy, reported 7.9% growth rate during Q2, as compared to the 6.4% growth rate in the corresponding period of previous financial year.
Government expenditure declined 2.7%, compared to a growth of 4.3%.
Private investment, measured as Gross Fixed Capital Formation, expanded 7.3% versus 6.7% last year.
A government statement after the data release said improving price dynamics and tax reforms are expected to boost household disposable incomes, strengthening the near-term consumption outlook. Moreover, healthy corporate sector balance sheets augur well for sustained private investments in the remaining half of FY26.
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