GDP growth reflects India's pro-growth policies; reforms to continue, says PM Modi as industry hails momentum

Prime Minister Narendra Modi has welcomed the strong Q2 FY26 numbers, saying they reflect the hard work and enterprise of the Indian people. "The 8.2% GDP growth in Q2 of 2025-26 is very encouraging. It reflects the impact of our pro-growth policies and reforms. It also reflects the hard work and enterprise of our people. Our government will continue to advance reforms and strengthen Ease of Living for every citizen."

Finance Minister Nirmala Sitharaman stated that the GDP estimates indicate robust economic growth and momentum in the Indian economy. “With a Real GDP growth rate of 8.2% for Q2- FY 2025-26 (July-Sept), India is the world’s fastest growing major economy. In the current financial year, Real GDP has registered 8% growth rate in first half (April-September). The growth has been driven by sustained fiscal consolidation, targeted public investment, and various reforms that have strengthened productivity and improved ease of doing business. Various high-frequency indicators also point to continued economic momentum and broad-based consumption growth."

Union Commerce and Industry Minister Piyush Goyal said India's growth momentum rises and the second quarter GDP growth rate for 2025-26 is estimated at 8.2%, a sharp rise from 5.6% for the same period last year. "Manufacturing, construction, financial, real estate & professional services, among others, are contributing to rising productivity and a vibrant economic environment. This stellar performance is a result of policy consistency and continuity under PM Narendra Modi's leadership, which is powering long-term stability and growth," said the Union minister.

Industry has also welcomed the economic growth numbers, with stakeholders appreciating the government's resilience and confidence in keeping India among the world’s fastest-growing major economies. Nirmal Kumar Minda, President, ASSOCHAM, said, “The real GDP growth of 8.2% in Q2 of FY26 is another affirmation of the nation’s strong economic resilience. By improving on the previous financial year’s 2nd quarter growth rate of 5.6% and outperforming expectations, the latest data underscores the strength of India’s economic fundamentals. Broad-based expansion across major sectors and improving domestic demand show how policy stability and reforms are translating into real growth. Even in a challenging global environment, the government has ensured resilience and confidence, keeping India among the world’s fastest-growing major economies.”

RPSG Group Chairman Sanjiv Goenka also commented on the latest GDP numbers, saying India continues to show why it is one of the most dynamic large economies in the world. "Growth remains anchored in strong fundamentals, expanding capacity and a steady policy environment. In a volatile global economy, this upward trajectory strengthens India’s position as a long-term engine of opportunity," said Goenka.

Dr Anish Shah, Group CEO & MD, Mahindra Group, also reacted, saying India’s 8.2% GDP growth in Q2 underscores the economy’s inherent resilience and the depth of domestic demand. "Even amid headwinds such as US tariffs, our manufacturing and services sectors have demonstrated extraordinary adaptability and momentum. This performance reaffirms India’s position as the world’s fastest-growing major economy and strengthens confidence as we head into FY26.”

India’s real GDP picked up pace to grow 8.2% in Q2FY26 compared with 5.6% for same quarter last year. The number significantly exceeded street expectations of 7.3% growth and was partially helped by the lower GDP deflator. Private consumption growth is gaining traction with growth of 7.9% in Q2. Rural consumption remains resilient, and urban consumption is gaining traction, helped by GST rate rationalisation, and we expect consumption demand to remain resilient in the coming quarters. Nominal GDP for the quarter grew by 8.8%.  

“Real GDP or GDP at Constant Prices in Q2 of FY 2025-26 is estimated at ₹48.63 lakh crore, against ₹44.94 lakh crore in Q2 of FY 2024-25, registering a growth rate of 8.2%. Nominal GDP or GDP at Current Prices in Q2 of FY 2025-26 is estimated at ₹85.25 lakh crore, against ₹78.40 lakh crore in Q2 of FY 2024-25, showing a growth rate of 8.7%,” a MoSPI release added.