India’s Economy Powers Ahead With 8.2% Growth In Q2 FY26, Defying Global Slowdown

Business News: GDP in Q2 rises from 7.8 percent in the previous quarter to 8.2 percent this time. Market analysts are surprised. Ahead of festival season, GST on key items was reduced from 22 September. That move saved nearly two lakh crore rupees for consumers, as per finance minister Nirmala Sitharaman. As spending improved, companies increased stock. Rural markets returned with more buying. This drove strong momentum across sectors.

HAS AGRICULTURE HELD ITS STRENGTH?

Primary sector posted 3.1 percent annual growth. Agriculture grows at 3.5 percent, slightly slower than last year but still stable. Mining shows a near flat move with just 0.04 percent fall. Rural recovery and good monsoon support farm output. Experts believe crops may perform better in the upcoming season. Basic sector stability helped prevent any drag on headline growth. Government also pushed local farming-related projects.

WHY IS MANUFACTURING RISING FAST?

Secondary sector sees a big jump of 8.1 percent. Manufacturing alone reports 9.1 percent growth, compared to only 2.2 percent last year. This signals a major recovery in industrial output. Rising demand for consumer goods and higher production before festivals played a key role. Electricity production also improved. Industry leaders say policy support and eased supply chains boosted performance. Factory conditions improved in rural belts too.

ARE SERVICES THE REAL ECONOMIC DRIVER?

Tertiary sector rises 9.2 percent, showing strong expansion across services. Trade, hotel and transport grow 7.4 percent. Financial and real estate services rise 10.2 percent. Public administration and defence sector record 9.7 percent. Economists say service sector support was crucial for sustained GDP growth. More domestic travel and urban economic activity helped. Technology-related services also continued steady expansion this quarter.

WHAT ARE THE MAIN GROWTH TRIGGERS?

Three factors mainly drive the rise. First, rural economy improvement. Second, higher public capital expenditure. Third, increased export strength. Private investment stays slow. Urban purchase trends are still mild. But household consumption continues to support almost sixty percent of overall GDP share. This provides economic stability. Experts suggest India has space to strengthen consumption if jobs improve.

CAN INDIA MAINTAIN THIS SPEED?

Analysts warn that future risks remain. Global demand uncertainty could affect export momentum. High inflation might push up household expenses. But strong local consumption and stable rural demand provide cushion. Manufacturing strength and service sector stability may support upcoming quarters. With present US President Donald Trump hinting at more trade partnerships, India may see new opportunities ahead. If policies stay consistent, growth may sustain.