India's Economy Booms with 8.2% Growth in Q2 FY26

India's economy recorded a remarkable 8.2% growth from July to September, driven by robust consumer spending and manufacturing. This exceeds expectations despite trade tensions with the U.S. Analysts note that favorable base effects and ongoing consumer demand may sustain this momentum, forecasting strong GDP growth for FY26.

India's economy surged ahead with an impressive 8.2% year-on-year growth in the July-September quarter, surpassing the previous quarter's growth and defying global trade challenges. Consumer spending and manufacturing led the charge in this economic uptick despite a 25% additional tariff imposed by the U.S. on Indian exports.

Economists had initially predicted a 7.3% expansion, but strong governmental expenditures and a statistically favorable deflator effect drove growth beyond expectations. This promising trend suggests the economy will continue performing well into the third quarter, bolstered by improved consumer demand.

Economic experts highlight that while nominal GDP growth appears muted at 8.7%, real GDP figures portray an underlying strength, forecasting a buoyant 7.5% annual growth. However, uncertainties linger regarding sustained demand post-festive season, potentially impacting future economic projections.

(With inputs from agencies.)