New Delhi: The country’s economic momentum gathered further pace in the July-September quarter of the current financial year, with the National Statistics Office (NSO) estimating real GDP growth at 8.2% in Q2 of FY 2025-26, sharply higher than the 5.6% expansion recorded during the same period last year. The improvement has been powered largely by robust activity in the secondary and tertiary sectors, underscoring the resilience of domestic demand despite persisting global uncertainties.
According to the NSO’s quarterly national accounts released on Friday, real GDP at constant 2011-12 prices stood at ₹48.63 lakh crore in Q2, up from ₹44.94 lakh crore a year earlier, while nominal GDP rose 8.7% to ₹85.25 lakh crore. The broad-based uptick in economic activity reflects continued strength in manufacturing and services, supported by a gradual recovery in private consumption.
The secondary sector expanded by 8.1%, led notably by manufacturing, which grew 9.1%, and construction, which registered 7.2%. The tertiary sector outpaced all others with 9.2% growth, buoyed particularly by financial, real estate and professional services, which clocked a robust 10.2% expansion.
In contrast, agriculture and allied activities posted a more subdued 3.5% growth, signalling moderation after a strong first half of the agriculture year, while electricity, gas, water supply and other utility services grew 4.4%.
On the expenditure side, demand conditions remained firm. Private Final Consumption Expenditure (PFCE) grew 7.9%, improving from 6.4% in the corresponding quarter last year, suggesting sustained household spending momentum. Government expenditure and investment indicators also supported overall activity, even as trade-related components continued to reflect mixed global cues.
For the first half of the financial year (April-September), real GDP growth averaged 8.0%, compared with 6.1% in H1 FY 2024-25, while real GVA rose 7.9%. Both nominal GDP and GVA expanded 8.8% in H1, indicating a modest inflation environment relative to last year.
The NSO noted that the estimates are compiled using a range of high-frequency indicators spanning agriculture, industry and services, including manufacturing output, corporate financial results, credit growth, GST collections and energy production, among others. It further cautioned that the figures are subject to revision as data coverage improves.
Crucially, the Ministry of Statistics and Programme Implementation confirmed that the base year for national accounts will soon shift from 2011-12 to 2022-23, with methodological enhancements and new data sources expected to reshape subsequent estimates. The next quarterly GDP release, incorporating the new series, is scheduled for February 27, 2026.
