India’s impressive 8.2% GDP growth in the July-September quarter of FY2025-26 marks a milestone moment for the nation’s economic trajectory. Clocking the highest growth in six quarters-and decisively outpacing global peers including China-this performance affirms not only the resilience of the Indian economy but also the effectiveness of the government’s policy interventions during an uncertain international environment. Despite concerns around US tariff actions and a moderation in global trade, India has delivered a growth number that few anticipated, exceeding every major forecast.
A key driver of this surge has been the sharp revival in manufacturing, which expanded by a robust 9.1%. The timely GST rate reduction announced by the Prime Minister gave a real and measurable stimulus to consumption and factory output. Manufacturers, anticipating strong demand during the festive season, significantly ramped up production-translating policy into palpable economic activity. This demonstrates the powerful ripple effect that well-calibrated domestic measures can have on broader macroeconomic indicators. Equally encouraging is the stellar performance of the services sector, which remains India’s strongest pillar in global competitiveness. Posting double-digit growth at 10.2%, services-from banking to real estate-have once again pulled the economy forward with remarkable consistency. This sector’s continued dynamism not only strengthens India’s GDP numbers but also enhances the country’s attractiveness to global investors seeking stable, high-return markets.
This six-quarter high comes at a time when apprehensions were brewing over tariff sanctions and global uncertainty. These concerns now stand decisively dispelled. The economy’s momentum in the first half-an average of 8% growth-already sets the stage for India to comfortably surpass the FY26 growth target of 6.3-6.8%. FDI flows, often sensitive to growth outlook, are likely to benefit from renewed confidence as investors interpret these numbers as evidence of structural economic strength rather than short-lived spikes. The government now has solid ground to intensify targeted interventions in underperforming sectors. With clear data-driven guidance, policy responses can become sharper and more strategic. India’s latest GDP performance sends an unambiguous message: the country is not merely withstanding global headwinds-it is accelerating through them. India enters the coming financial year on a robust foundation. The path to surpassing the annual GDP target now looks not just possible, but probable.
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