India's economy grows 8.2% in Q2, fastest in six quarters
What's the story
India's economy has registered a stellar growth of 8.2% in the July-September quarter, the highest in six quarters. The growth rate was much higher than estimate of 7.3% by leading economists and RBI's prediction of 7%. This sustained momentum could see India ending FY26 with a growth rate close to 7%, assuming the underlying strength continues into the latter half of the fiscal year.
Future projections
Economists expect full-year growth to average 6.9%
Economists surveyed by Moneycontrol expect India's full-year growth to average at 6.9%, slightly above the Reserve Bank of India's (RBI) estimate of 6.8%. Many also expect a stronger third quarter, aided by increased consumption after GST rate cuts were announced on September 22. The International Monetary Fund (IMF) has also acknowledged these efforts in its latest staff consultation report.
Global perspective
IMF acknowledges India's growth amid global uncertainties
The IMF has recognized the Indian government's efforts to sustain high growth while keeping fiscal prudence in mind. It noted that domestic demand continues to drive India's growth even in the face of global uncertainties. This recognition from such a prominent international body further underscores the resilience and potential of India's economy during these challenging times.
Sectoral growth
Secondary sector posted strong growth in Q2
Primary sectors such as agriculture and mining recorded 3.1% year-on-year growth, lower than the 3.5% growth seen in the same quarter of FY25. Agriculture expanded 3.5% in Q2 FY26, easing from 4.1% growth in Q2 FY25. Mining output remained largely flat. Meanwhile, the secondary sector comprising manufacturing and electricity posted a strong 8.1% annual growth in the quarter. Financial, real estate and professional services saw a growth of 10.2% in September quarter as against 7.2% in Q2 FY25.