India’s economy recorded a sharp acceleration in the July–September quarter of FY 2025–26, with gross domestic product (GDP) expanding 8.2% year-on-year, the fastest pace in six quarters. The figure, released by the Ministry of Statistics and Programme Implementation (MoSPI), significantly exceeded market expectations and the Reserve Bank of India’s (RBI) projection of 7%.
The robust growth was attributed to strong manufacturing output, buoyant consumer spending, and a statistical boost from low inflation and a favorable base effect. Manufacturing grew at 9.1%, while the construction sector also posted healthy gains, reflecting rising industrial activity and infrastructure investment.
Economists had forecast growth in the range of 7–7.7%, but the official data outperformed these estimates. Nominal GDP also expanded by 8.7%, underscoring resilience despite global trade uncertainties and tariff pressures.
The stronger-than-expected GDP numbers are likely to influence monetary policy discussions. While inflation remains under control, the RBI may weigh the growth momentum against global uncertainties and domestic fiscal pressures. Analysts suggest that the data strengthens India’s position as one of the fastest-growing major economies, even as challenges such as export slowdowns and geopolitical risks persist.
