India’s economy surprised everyone in the July-September quarter (Q2 FY26). Despite the US tariffs, India’s GDP growth rate was 8.2%, which is higher than 7.8% in the April-June quarter and much better than 5.4% in the same quarter last year. According to government data, the boom in consumption and manufacturing reduced the impact of US tariffs.
Economists polled by Reuters had forecast 7.3%. SBI Research had said 7.5% and Bloomberg had said 7.4%. But the actual figure turned out to be much higher than this. Consumption increased to 7.9 percent in the second quarter of FY26 from 7.0 percent in the first quarter. Manufacturing output increased to 9.1 percent in the second quarter from 7.7 percent in the first quarter. Similarly, construction work increased to 7.2 percent in the second quarter as against 7.6 percent in the first quarter, while government expenditure declined to 2.7 percent from 7.4 percent in the first quarter. In this way the pace of consumption and factories increased, but government expenditure decreased slightly.
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Why is the impact of American tariffs less?
On August 23, America imposed 50% tariff on India’s exports because India bought Russian oil. President Trump said that this Ukraine is promoting war. But it hasn’t caused much damage yet. GST 2.0 came into effect on September 22, reducing taxes on hundreds of items from soap to small cars. This will boost domestic production.
On this growth rate, PM Modi wrote on Twitter, ‘2025-26 Of Q2 8.2% in GDP growth very good thing. this is our growth promoting policy And shows the impact of reforms. It also shows the hard work and courage of our people. Our government will continue to pursue reforms and provide ez off living To strong Will do.‘
Madhavi Arora, Chief Economist of MK Global, said, ‘8.2% growth is higher than expected. This benefited from low impact of inflation, reduction in interest rates and delay in exports. This will continue in the third quarter also. 7% growth will easily happen for the whole year.
huge reduction in inflation
Inflation reached 0.25% in October, which is the lowest ever. The Reserve Bank may reduce interest rates in the December meeting. Experts say that the increase in exports and government spending have boosted growth. Some experts believe that demand from festivals will also lead to strong growth in the third quarter.
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The average throughout the year will be 7.5%. While some say that growth is good, but nominal GDP is weak. Due to low inflation, there can be a reduction of 0.25%. ‘India is the fourth largest economy in the world. These figures show that despite the challenges, the country’s progress is strong. Now all eyes are on the growth of the next quarter.
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