India’s Q2 GDP Surges to 8.2% - Second Quarter GDP Data

Indian economy continues to show robust growth and capture global attention as it is set to become the third-largest economy in the world by 2030, with a projected GDP of US$7.3 trillion. The present growth rate echoes India’s increasing global integration, structural reforms and crucial/ decisive policymaking.

 India is reinforced as one of the fastest-growing economies in the world, with the present growth rate by outpacing its global peers/counterparts. Thanks to resilient domestic demand, higher labour force participation, and moderate inflation, which supported the growth rate.

The outlook remains strong with sustained momentum and growth across sectors. The solid investor sentiment, rejuvenated domestic investment, indicates a stable and broad-based economy. The present data shows that GDP has increased to six quarters (i.e. 18 months) high.

India’s Q2 Surges to 8.2% – Second Quarter GDP Data 

On 28^th November 2025, the National Statistics Office (NSO) released Quarterly Estimates of Gross Domestic Product (GDP) for the July–September Quarter (Q2) of Financial Year (FY) 2025-26.

The recent data confirms India’s robust growth story as it continues with strong growth rate in the Second Quarter (i.e. Q2) of the FY 2025-26. Now, let’s dive into what the data says,

According to NSO estimates of GDP for Q2, the real GDP is estimated at 8.2% in FY 2025-26 in comparison to 5.6% in Q2 of FY 2024-25. Nominal GDP witnessed a growth of 8.7% in Q2 of FY 2025-26 as compared to the growth of 8.3% in Q2 of FY2024-25.

Source: Press Note, Quarterly Estimates of GDP for Q2 (i.e. July-September) of FY 2025-26, NSO, MoSPI

The Press Release stated that the Real Gross Value Added (GVA) has grown by 8.1% in Q2 of FY 2025-26 over the growth of 5.8% in Q2 of the previous financial year.

Source:  Press Note, Quarterly Estimates of GDP for Q1 (i.e. April-June) of FY 2024-25, NSO, MoSPI

The growth has been mainly driven by the Tertiary Sector with 9.2%. The Sector comprises of Trade. Hotels, Transport, Communication and Services related to broadcasting (7.4%). Financial, Real Estate & Professional Services (10.2%), and Public Administration, Defence & Other Services (9.7%).

The growth rate of Nominal GVA is estimated at 8.7% for Q2 of 2025-26 as compared to an 8.3% growth rate in Q2 of FY 2025-26.

Gross Fixed Capital Formation (GFCF) and Private Final Consumption Expenditure (PFCE) at Constant Prices have witnessed growth rates of 7.3% and 7.9% respectively, in Q2 of FY 2025-26.

Half-Yearly Growth of FY 2025-26

During the First Half (H1) of the Financial Year (i.e. from April to September 2025-26), the Real GDP (i.e. GDP at Constant prices) grew at 8.0%.

The Nominal GDP (i.e. GDP at Current Prices) in H1 of 2025-26 shows a growth rate of 8.8% against 9.0% in the previous financial year.

Real GVA during H1 of 2025-26 registered a growth rate of 7.9% and Nominal GVA in H1 of 2025-26 grew at 8.8% against 8.9% in the previous financial year.

Inflation Shows Stability

The Headline Inflation in October, 2025, has eased to 0.25% (year-on-year), the lowest level recorded in the Current CPI series. This shows the effective price management measures and also it remains within the Reserve Bank of India (RBI) tolerance limit.

As a result the RBI maintains the repo rate at 5.50% with a neutral stance, showing confidence in price stability and growth.

The persistent control in inflation affords space for monetary policy to nurture investment and economic growth. It also strengthens purchasing power and supports real consumption growth.

The macroeconomic environment is supported by easing inflation which provides a stronger foundation for inclusive, sustained, and stable economic growth in the coming quarters.

Conclusion – My perspective

It is pertinent to understand the GDP data. Many have this doubt: why or how can GDP be higher than the GVA data? Here is the explanation.

The GDP differs from GVA by excluding the Government’s subsidy outgo and including indirect tax collections.

i.e. GDP = GVA + Indirect Taxes – Subsidies

This means the reduction of subsidy can lift the GDP in comparison to GVA. In other words, when the government reduces subsidies, the GDP increases while GVA remains constant. Thus making GDP higher than the GVA growth.

The Second Quarter Data shows the Robust Growth rate. Thanks to decisive policy-making and implementation. The moderate inflation supported the economy in achieving this growth.

Even RBI in its monetary policy has revised its growth rate from 6.5% to 6.8% for FY 2025–26. This reflects strong momentum across all sectors.

India remains the robust and fastest-growing country among all major economies in the world.