India’s real GDP grew by 8.2% in Q2 FY 2025–26, a sharp rise compared to 5.6% in Q2 FY 2024–25, driven primarily by strong tertiary-sector performance, according to a statement by the PHD Chamber of Commerce and Industry (PHDCCI).
Highlighting the robust momentum of the Indian economy, Mr. Rajeev Juneja, President, PHDCCI, noted that the 8.7% nominal GDP growth underlines India’s steady progress towards the Viksit Bharat@2047 vision.
The tertiary sector led the economic surge with 9.2% growth, closely supported by the secondary sector. The manufacturing sector grew by 9.1% (YoY), while financial, real estate & professional services expanded by 10.2% during the same period. “This trend reflects India’s resilient and structurally strengthening economy, backed by transformative policy reforms,” said Mr. Juneja.
Investment activity also remained strong. Gross Fixed Capital Formation (GFCF) rose by 7.3%, reflecting continued government CAPEX push and expansion in productive capacity. Private final consumption expenditure grew by 7.9%, indicating solid domestic demand.
India’s GDP growth has shown a consistent upward trajectory for four consecutive quarters, rising from 6.37% in Q3 FY 2024–25 to 8.23% in Q2 FY 2025–26 (YoY). On a quarter-on-quarter basis, GDP is steadily returning toward its long-term trend following the dip in Q1 FY 2025–26.
Mr. Juneja added that India’s growth outlook remains supported by robust consumption trends, potential reductions in MPC rates, and a softening inflation environment across both CPI and WPI.
Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI, emphasized that the government’s continued focus on ease of doing business, supply chain strengthening, and structural reforms will further accelerate India’s growth momentum in the coming quarters.