Indian economy continues to gallop ahead with Q2 GDP growth at 8.2% led by manufacturing, construction

Indian economy continues to bolster ahead, registering GDP growth of 8.2% in the second quarter of the current financial year against 5.6% in the same quarter of the previous financial year. Manufacturing growth of 9.1% and construction sector growth of 7.2% boosted the GDP growth in the quarter.

It may be noted the Q2, FY26 GDP is at a twenty month high as the previous GDP print over 8% was in Q4, FY24 at 8.4%.

“Real GDP has been estimated to grow by 8.2% in Q2 of FY 2025-26 against the growth rate of 5.6% during Q2 of FY 2024-25. Nominal GDP has witnessed a growth rate of 8.7% in Q2 of FY 2025-26,” said a release from the ministry of statistics.  

Dr Anish Shah, Group CEO & MD, Mahindra Group, said, “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.”

“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%,” the release added.

"India’s Q2 FY2025–26 GDP growth came in stronger than expected at 8.2% year-on-year. With festive season spending and the momentum from GST 2.0 likely to support activity in Q3, we anticipate a significant upward revision to full-year growth estimates," said Rumki Majumdar, Economist and Director, Deloitte India.  

"Manufacturing (9.1%) and construction (7.2%) have delivered stronger-than-expected performance, demonstrating resilience even amid monsoon-related disruptions. This momentum underscores the robustness of India’s industrial base and its ability to sustain growth despite seasonal challenges. There could have been an impact from ramping up manufacturing to meet the expected high festive demand following the announcement of GST cuts," Majumdar added.

“The secondary (8.1%) and tertiary sector (9.2%) has boosted the Real GDP growth rate in Q2 of FY 2025-26 to rise above 8.0%. Manufacturing (9.1%) and Construction (7.2%) in the secondary sector, has registered above 7.0% growth rate at Constant Prices in this quarter,” the release said.

Financial, Real Estate & Professional Services growth at 10.2% in the tertiary Sector has sustained a substantial growth rate at Constant Prices in Q2 of FY 2025-26, according to the data from the government.

Agriculture and allied sector growth at 3.5% and electricity, gas, water supply and other utility services sector (4.4%) has seen moderated Real growth rate during the quarter as per the government data.

Consumption in the economy seems to be picking up evident from the 7.9% growth in real private final consumption expenditure (PFCE) has during Q2 of FY 2025-26 as compared to the 6.4% growth rate in the corresponding period of previous financial year. In the first half of the current financial year, real GDP has registered 8.0% growth rate, compared with 6.1% in H1, FY25.