New Delhi: India’s economic growth surged to 8.2 per cent in the second quarter of FY25-26, surpassing expectations and marking the highest expansion in the last six quarters. With this, India has retained its position as the fastest-growing major economy in the world.
With an overall growth rate of 8 per cent in the first half of the financial year, economists believe the country is on track to exceed the full-year target of 6.3 to 6.8 per cent for FY26.
However, the agriculture sector slowed to 3.5 per cent, down from 4.1 per cent recorded in the same period last year. The easing of Goods and Services Tax (GST) rates helped offset this decline by boosting consumption and production across manufacturing units.
The growth rate stood at 5.6 per cent in the corresponding period a year ago and 7.8 per cent in the previous quarter. Economists had earlier said that economic activity was expected to pick up ahead of the festive season.
India reduced GST rates on most items from September 22, a move aimed at strengthening consumption in the world’s fifth-largest economy. Demand for domestic goods began rising in the second quarter, even before the tax cuts on key items came into effect.
