India GDP Growth Rate

Quarterly GDP Summary – Q2 FY 2025–26 (Jul–Sep)

Quarterly Real GDP (Constant 2011-12 Prices)

• Q2 2025–26: ₹48.63 lakh crore
• Q2 2024–25: ₹44.94 lakh crore
• Growth rate: 8.2% year-on-year

India’s real GDP for Q2 FY 2025–26 is estimated at ₹48.63 lakh crore, marking an 8.2% YoY growth, a sharp acceleration from the 5.6% growth recorded in Q2 FY 2024–25. This reflects broad-based recovery and strengthening domestic economic activity.

Quarterly Nominal GDP (Current Prices)

• Q2 2025–26: ₹85.25 lakh crore
• Q2 2024–25: ₹78.40 lakh crore
• Growth rate: 8.7% year-on-year

At current prices, nominal GDP stands at ₹85.25 lakh crore, reflecting an 8.7% YoY expansion. Stable inflation and solid real output growth contributed to this rise.

Quarterly Sectoral Highlights (Real GVA Growth, YoY)

• Agriculture & Allied: 3.5% (vs 4.1% last year)
• Mining & Quarrying: -0.04% (nearly flat; improved from -0.4%)
• Manufacturing: 9.1% (strong improvement from 2.2%)
• Electricity, Gas, Water & Utilities: 4.4% (vs 3.0% last year)
• Construction: 7.2% (vs 8.4% last year, still strong)\
• Trade, Hotels, Transport & Communication: 7.4% (vs 6.1%)
• Financial, Real Estate & Professional Services: 10.2% (vs 7.2%)
• Public Administration, Defence & Other Services: 9.7% (vs 8.9%)
• Tertiary Sector (overall): 9.2% (vs 7.2% last year)

Key takeaway: Manufacturing, financial services, and public administration were the biggest growth drivers in Q2.

Expenditure Side (Real Growth, YoY)

• Private Consumption (PFCE): 7.9% (vs 6.4% last year)
• Government Consumption (GFCE): -2.7% (decline vs +4.3% last year)
• Gross Fixed Capital Formation (Investment): 7.3% (vs 6.7%)
• Exports: 5.6%
• Imports: 12.8% (much faster than exports; negative for net growth)

Key takeaway: Consumption and investment remained strong, but higher imports created a drag on net GDP.

Half-Yearly GDP Growth (H1: Apr–Sep 2025)

• Real GDP Growth (H1 FY 2025–26): 8.0%
• H1 FY 2024–25: 6.1%

India’s economy displayed broad-based expansion in the first half of the fiscal year.

Drivers of the Higher GDP Growth

• Manufacturing rebound: Strong 9.1% growth supported by higher industrial output, steel and cement consumption, and improved corporate performance.
• Services momentum: Tertiary sector grew 9.2%, led by financial services (10.2%), public administration (9.7%), and trade & transport.
• Stronger private consumption: PFCE grew 7.9%, supported by rising demand in vehicles, telecom, and overall urban consumption.
• Healthy investment activity: GFCF grew 7.3%, driven by construction, infrastructure spending, and strong credit growth.
• Low inflation: CPI eased to 1.7%, boosting real purchasing power and supporting real GDP growth.
• Positive high-frequency indicators: Steel (+8.8%), cement (+7.3%), bank credit (+10.8%), and port/rail cargo all showed steady momentum.