India's GDP just hit 8.2% growth—here's why it matters
India's economy grew by 8.2% in Q2 FY2025—the fastest pace in a year and a half, and well above last year's 5.6%.
That means India is still outpacing China and holding onto its title as the world's fastest-growing major economy.
What's behind the numbers? Strong rural demand, booming manufacturing, and steady service sector growth—all while inflation stayed low.
What fueled this surge?
People spent more (up nearly 8%), helped along by pre-festival shopping sprees and a GST rate cut in September.
Factories ramped up production by over 9%.
Even with government spending tightening up, government investment stayed solid.
The bigger picture—and what's next
Despite US tariffs on some exports, Indian businesses kept shipping out goods, thanks to strong local demand.
PM Modi credited reforms for keeping the momentum going; Finance Minister Sitharaman pointed to careful spending and smart investments as key reasons for success.
Chief Economic Adviser Nageswaran expects India to cross $4 trillion GDP this year—with new data coming in February that could show even more growth ahead.