India's Economic Surge: Fastest Growth in 18 Months

India's economy expanded at a record 8.2% in July-September, fueled by consumer spending and proactive production. This growth strengthens Prime Minister Modi's domestic position amid US tariffs. Economic reforms and strong consumer expenditure drive expectations for sustained growth through 2025/26.

India's economy recorded its fastest growth in 18 months during the July-September period, propelled by vigorous consumer spending and front-loaded production in anticipation of local festivals and facing stringent US tariffs.

This notable growth in the world's fifth-largest economy could bolster Prime Minister Narendra Modi's domestic standing and facilitate negotiations for a trade agreement with the US following the imposition of tariffs reaching 50% on Indian imports.

The encouraging 8.2% GDP growth, surpassing the Reuters poll forecast, indicates effective pro-growth policies. As India counters subdued global demand, the government anticipates robust economic performance to persist through fiscal 2025/26 amid easing inflation.

(With inputs from agencies.)