India economic resilience shines! Q2 FY26 GDP clocked a massive 8.2%, far exceeding forecasts. Unpack the manufacturing surge, robust government spending, and strong consumer demand that defied US trade tariffs.
India Q2 FY26 GDP 8.2% Growth Drivers Defy US Tariffs
India’s economy delivered a powerful statement of resilience, clocking a surprising and robust 8.2% growth in its Gross Domestic Product (GDP) for the second quarter (Q2) of the Fiscal Year 2026 (FY26). This figure, officially released by the National Statistics Office (NSO), marked a significant acceleration from the 5.6% growth recorded in the corresponding period of the previous year (Q2 FY25) and comfortably surpassed market consensus, which hovered around the 7.3% to 7.5% mark. The soaring performance firmly established India as the world’s fastest-growing major economy, navigating a period riddled with global trade uncertainties and the steep challenge posed by recently implemented US trade tariffs.
The key to this economic expansion lies in the broad-based recovery seen across major sectors and a decisive uptick in domestic consumption. On the supply side, the secondary and tertiary sectors acted as the primary engines of this six-quarter high growth momentum. The manufacturing sector, often a bottleneck, surged with a formidable 9.1% growth, driven by a pre-festive inventory build-up and streamlined tax structures following recent Goods and Services Tax (GST) rationalisation.
