India's Real GDP Surges 8.2% in Q2 2025-26; Manufacturing & Services Lead Growth
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institutions: National Statistical Office (NSO) | Ministry of Statistics and Programme Implementation (MoSPI)
The National Statistical Office (NSO) has released the Quarterly Estimates of Gross Domestic Product (GDP) for the Second Quarter (July-September) of 2025-26. The data reveals robust economic momentum, with Real GDP growing by 8.2% in Q2 2025-26, significantly higher than the 5.6% growth recorded in the corresponding quarter of the previous year (Q2 2024-25). For the first half of the financial year (H1 2025-26), Real GDP registered a growth of 8.0%, compared to 6.1% in H1 of the previous year.
The supply-side metric, Real Gross Value Added (GVA), grew by 8.1% in Q2 2025-26, up from 5.8% in Q2 2024-25. Growth was broad-based, driven by double-digit or near double-digit expansion in key sectors:
Tertiary (Services) Sector: Boosted overall growth with a 9.2% increase. Within this, Financial, Real Estate & Professional Services grew by an impressive 10.2% , and Public Administration, Defence & Other Services grew by 9.7%.
Secondary Sector: Expanded by 8.1%. Manufacturing saw a sharp acceleration, growing by 9.1% (compared to 2.2% in Q2 2024-25) , while Construction grew by 7.2%.
Primary Sector: Agriculture, Livestock, Forestry & Fishing moderated slightly but remained positive with 3.5% growth.
On the demand side, Private Final Consumption Expenditure (PFCE), reflecting household spending, grew by 7.9%, a significant improvement from the 6.4% growth in Q2 of the previous year. Gross Fixed Capital Formation (GFCF), a proxy for investment, grew by 7.4%.
Policy Relevance
The Q2 estimates indicate a strong economic upswing, with GDP growth accelerating to 8.2%. The sharp revival in Manufacturing (9.1%) and sustained strength in Construction (7.2%) and Services suggest that industrial and commercial activity is gaining traction. The 7.9% growth in private consumption points to improving domestic demand. However, the Mining & Quarrying sector contracted by 0.04%, and Electricity, Gas, Water Supply moderated to 4.4%, indicating specific sectoral headwinds that may require targeted policy attention.
What is the difference between GDP and GVA?β Gross Domestic Product (GDP) measures the total value of goods and services produced from the demand side (consumption, investment, net exports) plus net taxes. Gross Value Added (GVA) measures the value of goods and services produced by industries (supply side) by deducting intermediate consumption. GVA provides a clearer picture of sectoral activity independent of taxes and subsidies.
Follow the full news here: Quarterly Estimates of GDP for Q2 2025-26