PM Modi Welcomes India’s Robust 8.2% GDP Growth in Q2 2025-26

Prime Minister Narendra Modi welcomed India’s latest GDP figures and praised the nation’s strong economic momentum after the country recorded 8.2% real GDP growth in Q2 of FY 2025-26. He said the results reflect the impact of pro-growth reforms and the dedication of Indian citizens. The Prime Minister reaffirmed the government’s commitment to strengthening reforms and enhancing Ease of Living so that economic gains reach every section of society.

In a post on X, he stated that the 8.2% GDP expansion is encouraging and shows the combined effect of policy action and people’s enterprise.

The 8.2% GDP growth in Q2 of 2025-26 is very encouraging. It reflects the impact of our pro-growth policies and reforms. It also reflects the hard work and enterprise of our people. Our government will continue to advance reforms and strengthen Ease of Living for every citizen.
— Narendra Modi (@narendramodi) November 28, 2025

India’s Growth Story Strengthens with 8.2% GDP in Q2

India continues to reinforce its position as the world’s fastest-growing major economy. The Q2 GDP growth of 8.2% and 8% growth in the first half of FY26 highlight broad-based economic resilience. Elevated domestic demand, moderating inflation, a strong labour market, and a revival in investment activity contributed to the surge.

Key Takeaways at a Glance

Real GDP growth: 8.2% in Q2, 8% in H1 FY26
Inflation (CPI): Eased sharply to 0.25% in October 2025, lowest in the current CPI series
IIP: Grew 4% in September 2025, driven by 4.8% growth in manufacturing
Labour Force Participation: Climbed to 55.4%, a six-month high
Exports: Cumulative exports rose 4.84% in Apr – Oct 2025
WPI: Declined to –1.21%, signalling easing wholesale price pressures

GDP Growth: Strong Momentum Across Sectors

India’s real GDP grew 8.2% in Q2 compared with 5.6% a year earlier. Growth is well distributed across sectors:

Primary Sector: 3.1%
Secondary Sector: 8.1%
Tertiary Sector: 9.2%

Nominal GDP saw 8.7% growth in Q2, reflecting healthy price stability. During the first half of FY26, real GDP grew 8%, supported by the strong performance of the secondary and tertiary sectors

Inflation Shows Sharp Moderation

Inflation trends show significant cooling, reinforcing purchasing power and enabling the RBI to maintain repo rate at 5.50% with a neutral stance.

CPI Trends (October 2025):

CPI: 0.25%
CFPI: –5.02%
Rural Inflation: –0.25%
Urban Inflation: 0.88%

Softening food prices including oils, vegetables, fruits, eggs, and cereals contributed to the decline. GST rate cuts also supported overall moderation.

Wholesale inflation (WPI) fell to –1.21%, signalling easing cost pressures for industries and renewed investor confidence

Industrial Output Continues to Grow

India’s IIP grew 4% in September 2025, driven by:

Basic Metals: 12.3%
Electrical Equipment: 28.7%
Motor Vehicles: 14.6%

Use-based categories showed robust expansion:

Infrastructure & Construction Goods: 10.5%
Consumer Durables: 10.2%
Intermediate Goods: 5.3%

This broad-based rise confirms the momentum in manufacturing and investment activity.

Government Reforms Boost Manufacturing

Key initiatives that enhanced manufacturing output:

PLI Scheme covering 14 strategic sectors with ₹1.97 lakh crore outlay
Investments of ₹1.76 lakh crore already attracted
Skill India, Make in India, National Manufacturing Mission, and GST reforms strengthening capacities

These policies support domestic production and position India competitively in global value chains.

Employment Indicators Strengthen

Job generation continues to show resilience.

Labour Market Highlights (October 2025):

LFPR: 55.4%
WPR: 52.5%
Female LFPR: 34.2% (highest since May 2025)
Unemployment Rate: Stable at 5.2%

EPFO added 21.04 lakh net members in July 2025, reflecting expanding employment opportunities.
Naukri JobSpeak Index reported 10.1% growth, with a major boost in AI and ML hiring. Fresher hiring rose 15%.

Government programs like PMKVY, NAVYA, PMMY, Stand-Up India, and Start-Up India continue to support skill development and entrepreneurship.

Exports Rise Despite Global Uncertainty

India’s cumulative exports for April – October 2025 rose 4.84% to USD 491.80 billion.

Merchandise Export Highlights:

Growth: 0.63%
Strong markets: Spain, China, Hong Kong, USA, UAE
Key performing sectors:
- Marine products
- Meat and dairy
- Other cereals
- Cashew
- Electronic goods

Services Exports:

Services exports grew 9.75%, powered by computer and business services.

Government initiatives like extended export timelines, Credit Guarantee Scheme for Exporters, and Trade Promotion Mission strengthen export capacity.

GST 2.0 Shows Early Success

GST reforms introduced a simplified two-slab structure of 5% and 18%.
Revenue for October 2025 reached ₹1.96 lakh crore, up 4.6% from last year.

Rate cuts have boosted consumption, reduced costs, and expanded the tax base.

Growth Projections: Optimism Across Agencies

Several institutions have revised India’s growth outlook upward:

RBI: 6.8% for FY26
World Bank: 6.5% (2026)
Moody’s: 6.4% (2026)
IMF: 6.6% (2025) and 6.2% (2026)
OECD: 6.7% (2025)
S&P: 6.5% (FY26)

These estimates highlight global confidence in India’s economic resilience.

India remains on a strong and steady growth path. Structural reforms, digital initiatives, rising employment, and stable inflation form the backbone of this momentum. With supportive government policies, renewed investor confidence, and broad-based sectoral gains, the economy is well positioned to sustain its trajectory toward becoming the world’s third-largest economy by 2030.

(The content is sourced from agencies and has not been edited by mtimes.co.in.)

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PM Modi Welcomes India’s Robust 8.2% GDP Growth in Q2 2025-26