India posts 8.2% GDP growth in Q2 FY2025-26, German envoy calls surge “Very impressive”

India’s 8.2% growth in the July–September period (Q2 FY2025-26) is the highest recorded since Q4 FY2023-24, surpassing growth figures in every quarter from Q1 FY2024-25 through Q1 FY2025-26. The sharper-than-expected rise reinforces India’s position as the fastest-growing major economy globally and reflects broad-based momentum across key sectors.

Economists had projected growth in the range of 7–7.3% for Q2, but the actual print exceeded even the most optimistic estimates. Manufacturing, construction, finance, real estate and professional services contributed significantly, with consumer spending also rising steadily. Nominal GDP growth for the quarter stood at 8.2%, indicating moderate price levels that helped keep real growth elevated.

Quarter-wise, India recorded 7.8% growth in Q1, followed by 8.2% in Q2, bringing the first-half average for the fiscal year to around 8%. This is a substantial improvement from the previous year’s first-half growth of just over 6%. The strong H1 performance suggests that full-year growth could surpass earlier estimates of 6.5–6.7%, with several analysts now projecting the fiscal year to close near the 7–7.5% range.

The growth surge was driven by multiple factors. Manufacturing expanded sharply, aided by stronger corporate profitability and improved factory output. The services sector continued its steady rise, supported by demand in financial and professional segments. Private consumption grew close to 8%, signalling resilient household spending. A favourable base from the previous year also lifted the headline number, while continued policy support and recent economic reforms improved business sentiment and productivity. Agriculture grew at a modest pace, but the overall momentum remained strong enough to offset sectoral variations. The impressive performance has drawn praise from international partners. German Ambassador Philipp Ackermann described India’s 8.2% growth as “very impressive” and said the numbers make India an increasingly attractive destination for global investors. He noted that Germany views India as a stable and expanding economic partner, with growing interest among German companies to scale up operations in the country. India’s strong second-quarter print provides fresh confidence to policymakers ahead of the year-end economic cycle. If current trends continue, the country is poised to maintain its lead as one of the world’s most dynamic emerging economies, supported by rising consumption, strong industrial output and an improved investment climate.