India records six-quarter high GDP growth of 8.2 pc in Q2

New Delhi: The Indian economy grew by a higher-than-expected 8.2 per cent -- a six-quarter high -- as increased factory production in anticipation of a consumption boost from the GST rate cut helped offset deceleration in farm output.

The growth in the second quarter, which compared to 7.8 per cent in the preceding three months and 5.6 per cent in the year-ago period, was also aided by a good showing by the services sector, which clocked double-digit growth.

The previous high at 8.4 per cent was posted in the fourth quarter (January-March) of fiscal 2023-24.

The expansion helped India retain its position as the world's fastest-growing major economy. During the July-September quarter, the Chinese economy grew by 4.8 per cent.

As per data released by the National Statistics Office (NSO), the Gross Domestic Product (GDP) in the first half of 2025-26 worked out to be at 8 per cent, up from 6.1 per cent in the year-ago period.

With an 8 per cent growth rate in the first half, India may exceed the annual growth target of 6.3-6.8 per cent for FY26 as projected in the Economic Survey in January this year.

During the quarter, the manufacturing sector recorded a robust growth of 9.1 per cent compared to 2.2 per cent in the year-ago period.

Following the GST rate cut announcement by Prime Minister Narendra Modi in his Independence Day address, factories stepped up their output to meet the festival season demand. The GST rate cut came into effect on September 22.

The performance of the services sector, including banking and real estate, also witnessed an impressive growth of 10.2 per cent from 7.2 per cent in the same period a year ago.