Every once in a while, the economy delivers a moment that uplifts the nation—and this quarter did just that. The 8.2% GDP growth of India between July and September is the fastest in six quarters.
This has become possible because of a sharp manufacturing rebound, spirited services activity, and strong festive-season demand. With this result, the country has once again proven why it remains the world’s fastest-growing major economy.
India’s latest growth figures have brought back a feeling of optimism and collective achievement at a time of global uncertainty arising out of tariff wars and trade pressures, which continue to challenge many nations.
PM Modi Calls the Growth ‘Very Encouraging’
Prime Minister Narendra Modi welcomed the numbers with an uplifting message on X, saying the 8.2% GDP rise reflects India’s pro-growth reforms, resilience, and the hard work of its people.
He also reaffirmed the government’s commitment to strengthening the Ease of Living and continuing forward-looking reforms that keep the economy dynamic and inclusive.
Alongside the earlier 7.8% growth in Q1, India has now clocked an impressive 8% expansion in the first half of the financial year—a foundation economists believe will lead to even stronger performance in the months ahead.
Fastest Growing Major Economy
On GDP, Union Finance Minister Nirmala Sitharaman also has expressed optimism on X, —
“The GDP estimates released today shows the robust economic growth and momentum of the Indian economy. With a Real GDP growth rate of 8.2% for Q2- FY 2025-26 (July-Sept), India is the world’s fastest growing major economy. In the current financial year, Real GDP has registered 8% growth rate in first half (April-September)…”.
Economists Now Expect Full-Year Growth Above 7%
Chief economic adviser V. Anantha Nageswaran said the numbers make it easy to say that full-year growth will be 7% or possibly higher, well above the government’s budget estimate of 6.5–6.8%.
Experts credit GST rationalisation, solid consumption trends, low inflation, a softening interest-rate environment and ongoing reforms—such as new labour codes—for building strong economic momentum.
Manufacturing Leads the Comeback, Services Stay Strong
India’s sector-wise growth paints an encouraging picture:
- Manufacturing surged 9.1%, a strong comeback driven by festive demand and improved factory output.
- Services sectors expanded, benefiting from rising consumer confidence and digital-led business activity.
- Construction grew 7.2%, slightly softer but still robust and supportive of infrastructure momentum.
- Agriculture grew 3.5%, maintaining steady performance despite last year’s strong base.
Economists highlight private consumption as a key driver, bolstered by lower food inflation and improved discretionary spending.
Risks That Could Influence India’s Growth Ahead
At a moment of optimism, few economists also warn of challenges ahead. Rising US tariffs and weak global demand may weigh on exports, while rural consumption is still recovering. Agriculture faces climate-related risks, and private investment has yet to pick up fully despite strong public spending.
Moreover, due to fast-changing geopolitics, volatile crude oil prices could pressure inflation and the rupee, adding uncertainty to household budgets.
RBI’s Upcoming Policy Meeting Under the Spotlight
After this positive sentiment due to GDP accelerating along with inflation cooling, all eyes are now on the RBI’s monetary policy committee meeting next week. Markets are waiting to see whether the strong data and easing prices influence the central bank’s tone on interest rates.
For now, the sentiment across the country is clear:
India’s economic engine is not just running—it’s gaining remarkable momentum.
Disclaimer:
This article is based on officially released economic data, expert statements and public information. It is intended for news and informational purposes only.
Dr. Bidyut Barun Sarmah, with 22+ years of experience in print, electronic, and digital media, holds an MA and PhD in Mass Communication and Journalism. He has worked with AIR, Doordarshan, and the Publication Division under the Ministry of Information and Broadcasting. A published author and researcher, Dr. Sarmah writes extensively in both Assamese and English. He was also awarded a prestigious fellowship by the Ministry of Culture, Government of India, for his study on journalistic literature—an achievement that highlights his depth of scholarship and contribution to media studies. At Nest of News, he leads the editorial team and contributes across diverse topics.