India's GDP to grow by 7.2% in Q2 FY26: Report

Business Nov 12, 2025

India's GDP is expected to grow by 7.2% in the second quarter of FY26, a solid jump from last year's 5.6% for the same period.
This follows a strong 7.8% growth in Q1—the best in five quarters—mainly thanks to people spending more, with steady government investment as a supporting factor.

Private consumption up by 8%

Private consumption is up by 8%, helped by low inflation, better rural wages, and recent income tax cuts—so people have more money to spend.
The services and manufacturing sectors are also pitching in.
Ind-Ra points out that while things look good now, if overall (nominal) GDP growth drops below 8%, it could make managing government finances tougher down the road.