India’s GDP Growth Rises to 8.2% in Q2, Highest In Six Quarters

India’s economy expanded at a stronger-than-expected 8.2% in the September quarter, marking a six-quarter high, provisional estimates for Q2 FY25 showed. Real GDP stood at 5.6% in the same quarter last year, and exceeded analysts’ expectations of 7.3%. Nominal GDP grew 8.7% in the quarter.

The print also came in above the Reserve Bank of India’s projection of 7%. Economists polled by Moneycontrol expect full-year growth to average around 6.9%, slightly above the central bank’s forecast of 6.8%. Market participants anticipate firmer momentum in Q3 (October–December), supported by an uptick in consumption following recent Goods and Services Tax (GST) reforms.

Manufacturing Sector Expands At Fastest Pace

Manufacturing sector rose by 9.1% for the September quarter, up from 7.7%, compared to 2.2% for the same period last year. Real GDP registered a growth rate of 8% in H1 (April-September) of FY26, as against a growth rate 6.1% H1 of FY25.

“The sharp pick up in manufacturing at 9.1% and the continued resilience in financial and professional services at 10.2% highlight that India’s growth engines are broad-based and structurally improving,” Mahendra Patil, MP Financial Advisory Services LLP. “...Overall, the print reinforces confidence tat India remains firmly on a high-growth trajectory, supported by robust domestic fundamentals and sustained investment activity.”

The stronger than expected GDP figures were driven by growth in manufacturing sector, which expanded at the fastest pace in six quarters. In a briefing after the data, Chief Economic Advisor V Anantha Nageswaran said GDP growth for FY26 has been revised to 7%, from 6.3-6.8%. The manufacturing sector rose 9.1% , while Financial, Real Estate & Professional Services expanded 10.2%.

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