India’s GDP Surges 8.2% in Q2 FY26: Six-Quarter High Fueled by Manufacturing Boom

India’s economy achieved a robust 8.2% real GDP growth in Q2 FY26 (July-September 2025), marking the highest rate in six quarters and surpassing forecasts of around 7.3%. This upswing outpaced the prior quarter’s 7.8% and Q2 FY25’s 5.6%, driven by strong manufacturing output and services expansion amid resilient domestic demand.​

Manufacturing led with 9.1% year-on-year growth, rebounding sharply from 2.2% last year, thanks to pre-festive production and GST rate cuts boosting consumption. Services, especially finance, real estate, and professional segments, expanded 10.2%, the best in nine quarters. Gross Value Added (GVA) rose 8.1%, reflecting broad sectoral strength.​

Private consumption climbed 7.9%, while investments via gross fixed capital formation grew 7.3%. Government spending dipped 2.7% due to fiscal discipline, yet overall momentum held firm.​

Agriculture recorded 3.5% growth, down slightly from 4.1%, while mining remained near-flat at -0.04%. Trade and transport maintained steady 7.4% expansion, and construction advanced 7.2%, aided by public capex. Nominal GDP hit 8.7%, supporting fiscal goals with low inflation.​

H1 FY26 growth averages 8.0%, positioning India for over 7% annual expansion despite global headwinds. Analysts highlight sustained capex and rural recovery as positives.​