India's Economic Leap: Surpassing Expectations Amid Global Challenges

India's economy experienced a remarkable 8.2% growth year-on-year in Q2 FY26, against global trade challenges. This growth was driven significantly by consumer spending and manufacturing, bolstered by statistically favorable conditions. Economists highlight various factors contributing to this growth and anticipate sustaining momentum through fiscal policies.

In a striking display of resilience, India's economy surged ahead with an 8.2% growth in the second quarter of FY26. This upswing outpaces the previous quarter's 7.8% and far exceeds economists' forecasts amid a challenging global trade environment.

Madhavi Arora, Chief Economist at Emkay Global Financial Services, attributes this growth to several favorable factors, including deflator effects and easing monetary policies. These elements, coupled with robust consumer demand, are expected to buoy growth into the third quarter, pushing the fiscal year 2026 GDP above 7%.

Despite global uncertainties, other economists, such as Garima Kapoor from Elara Securities and Upasna Bhardwaj of Kotak Mahindra Bank, express optimism. They foresee continued growth stimulated by government expenditure and consumer activities, albeit mindful of potential future adjustments due to changing economic dynamics.

(With inputs from agencies.)