New Delhi: India's economy has recorded a surprising surge in growth, reaching a six-quarter high of 8.2% in the second quarter of fiscal year 2026 (FY26). This robust expansion, detailed in official data released by the National Statistics Office (NSO), significantly surpasses the 5.6% growth registered in the same period last year. The stellar performance is primarily attributed to a strong rebound in manufacturing and a resilient services sector.
The data indicates that GDP at constant prices climbed to ₹48.63 lakh crore during the July-September quarter, a notable increase from ₹44.94 lakh crore in the corresponding period of the previous year. Nominal GDP also experienced substantial growth, rising by 8.7% to reach ₹85.25 lakh crore.
The manufacturing sector emerged as a key growth driver, expanding by an impressive 9.1%. The construction sector also contributed significantly, with a growth rate of 7.2%. This robust performance in these sectors propelled the overall secondary sector growth to 8.1%. The services sector continued its strong showing, with the tertiary sector expanding by 9.2%. Within the tertiary sector, financial, real estate, and professional services stood out with a remarkable 10.2% growth.
Private consumption also played a crucial role in driving economic expansion. Real private final consumption expenditure (PFCE) increased by 7.9% in Q2, compared to 6.4% in the same period last year. This indicates sustained demand despite uneven monsoon conditions.
However, not all sectors experienced such strong growth. The agricultural sector lagged behind, growing by only 3.5%. Utilities, including electricity, gas, and water supply, also saw slower growth at 4.4%. Mining sector contracted marginally by 0.04%.
Overall, the Indian economy has demonstrated remarkable resilience in the first half of FY26, achieving an 8% GDP growth rate, a significant increase from the 6.1% recorded in the first half of the previous fiscal year. Real Gross Value Added (GVA) growth during Q2 stood at 8.1%, bolstered by broad-based expansion across key industries.
The latest figures solidify India's position as the world's fastest-growing major economy. International agencies anticipate India will maintain its lead as one of the fastest-growing major economies. The International Monetary Fund (IMF) projects India to grow at 6.6% in FY 2025-26, followed by 6.2% the next year.
The government anticipates that strong demand, consistent public spending, and easing inflation will help India navigate trade uncertainties and sustain growth throughout the remainder of FY26.
