India’s real GDP grew 8.2 per cent YoY in Q2 FY26 compared to 5.6 per cent in Q2 FY25. The Nominal GDP grew 8.7 per cent during the period, according to the government data.
The manufacturing activities remained a key contributor to the GDP growth in the quarter, rising 9.1 per cent YoY. Construction followed with a 7.2 per cent growth. Agriculture and allied sectors expanded by 3.5 per cent during the quarter.
Here is how the prominent economist reacted to the GDP growth in the quarter-
Consumption main driver: Crisil
Dharmakirti Joshi, Chief Economist at Crisil, said that private consumption was the main driver of higher real growth. He added that from the supply side, manufacturing and services saw a significant rise.
“The rationalisation of—and reduction in—the goods and services tax (GST) rates is bolstering private consumption, complementing reduced income tax and interest rates cuts (the latter induced by the repo rate cuts made by the Monetary Policy Committee of the Reserve Bank of India this year).”, Joshi said
Blockbuster growth: Elara Capital
“The blockbuster GDP growth has been led by front-loading of exports along with strong government spending, especially capex, amid a supportive base effect. With today’s print, full-year FY26 GDP growth will now see an upside and will be close to 7.5%- way above RBI’s and govt’s estimate.”, Garima Kapoor, Deputy Head of Research & Economist at Elara Capital said.
Rate cut probability eased; ICRA
Aditi Nayar, Chief Economist, ICRA, said, “With the Q2 FY2026 GDP growth exceeding 8%, the probability of a rate cut in the December 2025 MPC review has certainly eased, notwithstanding the series-low CPI inflation print for October 2025.”
Economy remains resilient: Anand Rathi
Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group, said that even after accounting for these technical factors, growth performance in Q2 FY26—and for the first half overall—has been materially stronger than anticipated.
He added that with real GDP expanding 8% in H1, full-year growth is now likely to exceed their earlier estimate of 7%, even if activity moderates slightly in the remainder of the year. India is set to retain its position as the fastest-growing major economy globally. Crucially, this period has been marked by high growth accompanied by muted inflation—an indication of the economy’s underlying resilience, Hajra underlined
“Despite robust growth and a benign inflation environment, we expect the Monetary Policy Committee of the Reserve Bank of India to deliver a 25 bps policy rate cut in the upcoming review. The prevailing macroeconomic configuration—strong output momentum, low inflation, and the prospect of monetary easing—continues to support a favourable outlook for Indian equities,” Hajra added.