Prime Minister Narendra Modi on Friday said that the 8.2 percent GDP growth in Q2 of 2025-26 was very encouraging.
“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,” PM Modi wrote on the microblogging platform X.
India’s economic ascent continues to capture global attention, according to the government’s report, “8.2% GDP: India’s Growth Story Strengthens.” Already the world’s fourth-largest economy, India is confidently charting a course to become the third largest by 2030, with GDP projected at USD 7.3 trillion.
The report highlights that decisive policymaking, structural reforms, and deeper global integration are driving the current growth phase. Accelerating growth, resilient domestic demand, moderating inflation, and higher labour force participation have positioned India as the fastest-growing major economy.
Robust GDP Growth
India’s real GDP grew 8.2% in Q2 of FY 2025-26, up from 5.6% in Q2 FY 2024-25. Q1 growth stood at 7.8% versus 6.5% the previous year. Sector-wise, Primary grew 3.1%, Secondary 8.1%, and Tertiary 9.2%, contributing to overall growth.
Inflation Shows Stability
Consumer Price Index (CPI) inflation eased to 0.25% year-on-year in October 2025, driven by moderation in food prices and GST rate reductions. Rural inflation fell to –0.25%, urban inflation stood at 0.88%, while Wholesale Price Index (WPI) inflation dropped to –1.21%.
Industrial Production & Employment
The Index of Industrial Production (IIP) grew 4% in September 2025, led by manufacturing. Key contributors included basic metals (12.3%), electrical equipment (28.7%), and motor vehicles (14.6%). Labour force participation rose to 55.4%, female participation to 34.2%, while unemployment remained stable at 5.2%. EPFO added 21.04 lakh net new members in July 2025, reflecting rising employment opportunities.
Trade & Exports
India’s external sector remained strong, with combined merchandise and services exports growing 4.84% to USD 491.80 billion. Key export growth sectors included marine products, meat, dairy and poultry, cereals, cashew, and electronic goods. Services exports grew 9.75%, showcasing competitiveness in computer and business services.
Success of GST 2.0
The simplified GST structure (5% and 18%) and rate rationalisations boosted collections to Rs 1.96 lakh crore in October 2025, up 4.6% year-on-year. Reduced rates have increased household savings, expanded the tax base, and strengthened revenue stability.
Global Confidence & Growth Projections
Major institutions have upgraded India’s growth projections: RBI 6.8%, World Bank 6.5%, Moody’s 6.4–6.5%, IMF 6.6–6.2%, OECD 6.7–6.2%, and S&P 6.5–6.7% for 2025-27. These upgrades underscore international confidence in India’s economic fundamentals and its capacity for sustained growth despite global uncertainties.
