Q2 GDP Data: India’s economy grows 8.2%, beats estimates—Key sectors driving upside

Q2 GDP Results: India’s economic momentum remained strong in the second quarter (July–September) of FY26, with official data from the National Statistics Office (NSO) showing real GDP growth of 8.2 per cent year-on-year (YoY).

This exceeded earlier expectations, including a Zee Business poll projection of around 7.2 per cent. On a quarter-on-quarter (QoQ) basis, growth rose from 7.8 per cent to 8.2 per cent.

Finance Minister Nirmala Sitharaman said the latest GDP estimates show the robust economic growth and momentum of the economy.

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"The growth has been driven by sustained fiscal consolidation, targeted public investment, and various reforms that have strengthened productivity and improved ease of doing business. Various high-frequency indicators also point to continued economic momentum and broad based consumption growth," the finance minister wrote on microblogging site X (formerly Twitter).

GDP and GVA Growth

The gross value added (GVA) also strengthened, expanding 8.1 per cent YoY compared with 5.8 per cent in the same period last year. Nominal GDP grew 8.7 per cent YoY, up from 8.3 per cent, signalling robust overall economic activity.

Sector-wise Performance

Sector-wise, the secondary and tertiary sectors were the main drivers of growth. Manufacturing recorded a remarkable 9.1 per cent YoY growth, up from 2.2 per cent, while construction grew 7.2 per cent, slightly lower than last year’s 8.4 per cent.

The services sector expanded 9.2 per cent, compared with 7.2 per cent in Q2 FY25, with trade, hotels, transport, and telecom rising 7.4 per cent (from 6.1 per cent), public administration and defence at 9.7 per cent (from 8.9 per cent), and finance and real estate surging 10.2 per cent (from 7.2 per cent).

Primary Sector Performance

The primary sector saw mixed performance. Agriculture grew 3.5 per cent, slightly down from 4.1 per cent, while the mining sector improved from -0.4 per cent to -0.04 per cent, signalling a near recovery.

Industrial and Investment Growth

Industrial growth overall rose 7.7 per cent, up from 3.8 per cent. Gross fixed capital formation, a key measure of investment, expanded 7.3 per cent, up from 6.7 per cent. Private final consumption expenditure also strengthened, growing 7.9 per cent, compared with 6.4 per cent in Q2 FY25. Government consumption expenditure, however, declined 2.7 per cent, down from 4.3 per cent in the previous year.

Half-Year Overview

For the half-year (April–September) of FY26, real GDP grew 8.0 per cent YoY, compared with 6.1 per cent in H1 FY25, while nominal GDP rose 8.8 per cent, slightly lower than last year’s 9.0 per cent.

These figures underscore India’s sustained economic recovery driven by strong domestic demand, investment, and expanding industrial and service activities.