India's economy is on a roll: 7.6% growth in H1 FY26

Business Nov 26, 2025

India just clocked a solid 7.6% economic growth in the first half of FY26—up from last year's 6.1%.
The boost came from strong manufacturing, services, and big government spending, according to ICICI Bank.

What's driving the numbers—and what's next?

Services led the charge in Q1 FY26 with 9.3% growth, while manufacturing and agriculture also picked up steam in the same quarter.
Even with a GST rate cut temporarily slowing things down, retail sales improved in Q3 and exports hit $413 billion despite global hurdles.
Looking ahead, ICICI expects growth to cool off slightly (to around 7% this year), as exports and government spending slow down—but overall momentum stays positive for now.