India’s second quarter real GDP growth for FY 2025-26 beat estimates by a wide margin, coming in at a robust high of 8.2%. This is the highest real GDP growth in six quarters for the Indian economy. India has also retained its tag of being the fastest growing major economy in the world.Most economists had projected a real GDP growth of 7.3% in Q2 FY 2-25-26. RBI’s own estimates had pegged the GDP growth for the second quarter at 7%. In Q2 of FY 2025-26, real GDP grew at 8.2% growth, surpassing the 5.6% growth observed in Q2 of FY 2024-25 and 7.8% seen in Q1 FY 2025-26. During the same period, nominal GDP saw a growth of 8.7%.
India’s Q2 FY 2026 GDP growth: Top Highlights
The overall Real GDP growth of 8.2% was primarily driven by robust performances in Secondary (8.1%) and Tertiary (9.2%) sectors. Within the Secondary sector, Manufacturing and Construction sectors showed significant progress, achieving growth rates of 9.1% and 7.2% respectively at Constant Prices.The Tertiary sector maintained strong momentum, particularly in Financial, Real Estate & Professional Services, which recorded a substantial 10.2% growth at Constant Prices. However, Agriculture and Allied activities showed modest growth at 3.5%, whilst the Electricity, Gas, Water Supply and Other Utility Services sector registered 4.4% growth.Real Private Final Consumption Expenditure saw improved performance with 7.9% growth, compared to 6.4% in the corresponding period of the previous financial year. The first half (April-September) of FY 2025-26 saw Real GDP growth of 8.0%, marking a significant improvement from the 6.1% growth recorded in H1 of FY 2024-25.In Q2 of FY 2025-26, the Real GDP (at Constant Prices) reached ₹48.63 lakh crore, showing an 8.2% increase from ₹44.94 lakh crore in Q2 of FY 2024-25. The Nominal GDP (at Current Prices) for Q2 of FY 2025-26 stood at ₹85.25 lakh crore, indicating an 8.7% growth from ₹78.40 lakh crore in Q2 of FY 2024-25.The Real GVA estimates for Q2 of FY 2025-26 reached ₹44.77 lakh crore, demonstrating an 8.1% growth from ₹41.41 lakh crore in Q2 of FY 2024-25. Similarly, Nominal GVA in Q2 of FY 2025-26 was estimated at ₹77.69 lakh crore, displaying an 8.7% increase from ₹71.45 lakh crore in Q2 of FY 2024-25.For H1 2025-26, Real GDP estimates stood at ₹96.52 lakh crore, reflecting an 8.0% growth from ₹89.35 lakh crore in H1 2024-25. The Nominal GDP for H1 2025-26 was calculated at ₹171.30 lakh crore, showing an 8.8% rise from ₹157.48 lakh crore in H1 2024-25.The Real GVA for H1 2025-26 reached ₹89.41 lakh crore, indicating a 7.9% increase from ₹82.88 lakh crore in H1 2024-25. The Nominal GVA in H1 2025-26 was estimated at ₹155.94 lakh crore, marking an 8.8% growth from ₹143.39 lakh crore in H1 2024-25.