New Delhi: India has delivered one of its strongest economic surprises in recent quarters, posting a dramatic 8.2% GDP growth in Q2 FY26, far outperforming both last year’s sluggish 5.6% and market expectations of 7–7.5%. The data, released by the National Statistical Office (NSO) on Friday, reflects a resurgence powered largely by a sharp revival in the manufacturing sector, improved household spending, and steady investment momentum.
This robust performance comes at a time when global economic conditions remain uncertain, making India’s acceleration especially significant. In comparison, Q2 FY25 had marked the slowest expansion in seven quarters, with GDP rising merely 5.6%. After that phase, the economy gained traction, clocking 7.8% growth in Q1 FY26. The latest figures now underscore that India’s recovery cycle is not only stabilising but strengthening.
According to the NSO, Real GDP at constant prices touched ₹48.63 lakh crore in the July–September period of 2025, up from ₹44.94 lakh crore recorded in the same quarter last year. The Real Gross Value Added (GVA)—a more production-focused metric—also expanded sharply by 8.1%, rising from ₹41.41 lakh crore to ₹44.77 lakh crore, signalling broad-based economic vibrancy.
The standout performer was manufacturing, which surged 9.1%, boosted by improved industrial activity, easing supply chains, and pickup in factory output. Agriculture maintained a stable but modest 3.5% growth, while services showed resilience across financial, trade, and public administration segments.
However, government expenditure took a hit. Government Final Consumption Expenditure (GFCE) contracted 2.7%, a notable reversal from the 4.3% growth seen last year. In contrast, Indian households continued to spend with confidence. Private Final Consumption Expenditure (PFCE) rose 7.9%, highlighting strong urban demand and recovery in discretionary buying.
Investments remained a point of consistency, with Gross Fixed Capital Formation (GFCF) rising 7.3%, marginally higher than the previous year’s 6.7%. This uptick indicates improving infrastructure activity, steady construction push, and healthier private-capex signals.
Meanwhile, the government has rescheduled the release of October’s Index of Industrial Production (IIP) data, now set for December 1 at 4 PM, adding further anticipation around industrial performance.
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