The second quarter (July–September) of the financial year 2025–26 has proved to be extremely positive for the Indian economy. Surpassing several projections, analyses, and market expectations, the country’s real Gross Domestic Product (GDP) growth has reached 8.2 percent. The robustness of the post-GST economic structure, improvements in tax realisation, and strong performance of the services sector are seen as major contributors to this growth. According to the provisional estimates released by the NSO under the Ministry of Statistics and Programme Implementation, the current data highlights the firm momentum of the Indian economy.

During the same period last year, the GDP growth rate was 2.6 percent lower; in comparison, the growth this year is significantly more positive. At constant prices, India’s GDP has reached ₹48.63 lakh crore, higher than last year’s ₹44.94 lakh crore. Similarly, nominal GDP has grown by 8.7 percent to touch ₹85.25 lakh crore. This growth not only boosts market confidence but also creates a favorable environment for increased investment.

In the second quarter, India’s manufacturing sector registered a growth of 9.1 percent, strengthening the nation’s industrial base. The construction sector recorded a 7.2 percent growth, which may further accelerate capital investment and infrastructure development in the future.

The overall growth of the secondary sector stood at 8.1 percent, while the services (tertiary) sector outperformed all others with a 9.2 percent growth rate. Notably, the finance, insurance, real estate, and professional business services segments registered a growth of 10.2 percent, highlighting the strong service-driven momentum of the economy.

These growth figures indicate that the services sector continues to be the primary driving force of the Indian economy.

Private Final Consumption Expenditure (PFCE) grew by 7.8 percent in the second quarter, higher than the 7.0 percent in the first quarter. Since household consumption is the backbone of India’s economy, this upward trend reflects growing market confidence. Rising middle-class incomes, controlled inflation, and improved job creation have further supported this momentum.

While other sectors displayed strong growth, the agricultural sector showed some moderation. Its growth stood at 3.5 percent, indicating challenges such as irregular monsoons, uneven crop yields, and other operational issues. The electricity, gas, and water supply sector grew by 4.4 percent, reflecting stable infrastructure essential for industrial and service activities.

In the first six months of FY 2025–26, India’s real GDP growth rate remained stable at 8 percent. During the same period last year, it was 6.1 percent. This shows that despite global uncertainties, inflationary pressures, and recession fears, the Indian economy has maintained its strong momentum.

In the first quarter (April–June), real GDP grew by 7.8 percent, compared to 6.5 percent in the corresponding period of 2024–25. This indicates that the Indian economy continues its recovery journey with confidence and sustained growth.