India's Q2 GDP Surpasses Expectations at 8.2%
New Delhi, Friday, 28 November 2025.
India’s GDP growth for July-September 2025 was 8.2%, exceeding forecasts and highlighting strong domestic demand amid global challenges.
Domestic Demand Drives Exceptional Growth
India’s GDP growth for the July-September 2025 quarter reached 8.2%, significantly surpassing initial projections set by economists and the Reserve Bank of India (RBI) [1][2]. This surge is primarily attributed to robust domestic demand and strategic economic measures taken by the government and businesses alike. The growth was bolstered by a strong performance in manufacturing and significant increases in private consumption expenditure, which saw a rise of 7.9% [1].
Impact of Global Factors
Despite facing substantial global economic challenges, including heightened U.S. tariffs on Indian exports, India’s economic momentum remained resilient. The front-loading of exports in anticipation of these tariffs played a crucial role in sustaining growth, alongside increased government spending and investments in key sectors like infrastructure [2][3]. Analysts noted that India managed to mitigate the adverse effects of external pressures, thanks to strong domestic policies and strategic economic planning [1][3].
Future Economic Outlook
Looking forward, the Reserve Bank of India is poised to adjust monetary policies, including a potential rate cut of 25 basis points, which could further stimulate economic activity [2]. However, growth is expected to moderate slightly in the coming quarters, with projections indicating a stabilization around 6.6% for the fiscal year 2025/26 [3]. This moderation reflects anticipated adjustments to external trade pressures and the implementation of domestic policy measures aimed at sustaining economic stability [2][3].
Strategic Policy Adjustments
Strategic policy adjustments, such as the anticipated RBI rate cut and ongoing fiscal consolidation, are set to play a pivotal role in shaping India’s economic trajectory. These measures are designed to support continued growth while managing inflation and maintaining fiscal discipline [2]. The International Monetary Fund (IMF) has commended India’s economic performance, highlighting the importance of continued structural reforms to enhance growth potential and competitiveness [3].