New Delhi, India | November 28, 2025 —
India’s economy surged ahead of expectations in the July–September quarter of FY26, recording 8.2% real GDP growth, the strongest pace in six quarters, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). The performance exceeded market estimates of 7.5%, reaffirming India’s position as the fastest-growing major economy.
Gross Value Added (GVA) expanded 7.6%, powered by a robust 9.3% rise in manufacturing, 10.2% growth in construction, and 7.1% expansion in services. The electricity and utilities sector also grew a strong 8.1%. However, the agriculture sector moderated to 3.5%, affected by uneven monsoon patterns and deficient rainfall in key states.
Finance Minister Nirmala Sitharaman credited the uptick to GST rationalization, which led to a 12% consumption boost, coupled with record-breaking infrastructure spending crossing ₹10 lakh crore. Export growth of 6.8%, despite global volatility, further supported the quarterly momentum.
RBI Governor Sanjay Malhotra welcomed the numbers, projecting 7.2% GDP growth for FY26, while cautioning about persistent inflation at 4.8%. Stock markets reacted positively, with the Sensex rising 0.8% to 86,200, reflecting investor confidence in India’s economic trajectory.
The International Monetary Fund (IMF) revised its India growth forecast upward to 7%, commending structural reforms and resilient macroeconomic fundamentals. Yet, concerns linger over slowing private consumption at 6%, signaling ongoing rural distress and uneven income recovery.
Despite these challenges, economists note that India remains firmly on track toward achieving the $5 trillion GDP milestone by 2028, supported by strong public investment, manufacturing revival, and stable service-sector expansion.
