Government data is pegging growth rate at above 8 percent.
New Delhi: The Indian economy continues to show robust growth and capture global attention as it is set to become the third-largest 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 decisive policymaking.
India is reinforced as one of the fastest-growing economies in the world, with the present growth rate outpacing its global peers — thanks to resilient domestic demand, higher labour force participation and moderate inflation, which is playing a supportive role.
The outlook remains strong with sustained momentum and growth across sectors. Solid investor sentiment and rejuvenated domestic investment indicates a stable and broad-based economy.
Second quarter GDP data says economy robust
On 28 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 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 percent in FY 2025-26 in comparison to 5.6 percent in Q2 of FY 2024-25. Nominal GDP witnessed a growth of 8.7 percent in Q2 of FY 2025-26 as compared to a growth of 8.3 percent in Q2 of FY2024-25.
The press release stated that the Real Gross Value Added (GVA) has grown by 8.1 percent in Q2 of FY 2025-26 over a growth of 5.8 percent in Q2 of the previous financial year.
The growth has been mainly driven by the tertiary sector at 9.2 percent. The sector comprises trade. hotels, transport, communication and services related to broadcasting (7.4 percent), financial, real estate and professional services (10.2 percent), and public administration, defence and other services (9.7 percent).
The growth rate of Nominal GVA is estimated at 8.7 percent for Q2 of 2025-26 as compared to an 8.3 percent 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 percent and 7.9 percent 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 percent.
The Nominal GDP (i.e. GDP at current prices) in H1 of 2025-26 shows a growth rate of 8.8 percent, against 9.0 percent in the previous financial year.
Real GVA during H1 of 2025-26 registered a growth rate of 7.9 percent and Nominal GVA in H1 of 2025-26 grew at 8.8 percent against 8.9 percent in the previous financial year.
Inflation shows stability
The Headline Inflation in October 2025, has eased to 0.25 percent (year-on-year), the lowest level recorded in the Current CPI series. This shows the effective price management measures and also remains within the Reserve Bank of India (RBI) tolerance limit.
As a result, the RBI maintains the repo rate at 5.50 percent 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
It is pertinent to understand the current GDP data with a microscopic lens. Many ask why or how can GDP be higher than 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, GDP increases, while the GVA remains constant, making the GDP higher than the GVA growth.
The second quarter data shows a robust growth rate, thanks to decisive policy-making and implementation.
Moderate inflation has supported the economy in achieving this growth.
Even RBI, in its monetary policy report, has revised its growth rate from 6.5 percent to 6.8 percent for FY 2025–26.
This appears to reflect strong momentum across all sectors.
The question we are now asking is: Has the tiger’s roar just begu
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