New Delhi: India’s economy continues to show strong momentum, with real GDP growth estimated at 8.2% in Q2 of FY 2025-26, up from 5.6% in the same quarter last year. Nominal GDP grew 8.7%, reflecting broad-based expansion across all major sectors. The primary sector recorded 3.1% growth, while the secondary and tertiary sectors expanded by 8.1% and 9.2%, respectively, underscoring the diversified nature of India’s growth.
Inflation remains well-contained, with Consumer Price Index (CPI) inflation easing to 0.25% in October 2025, supported by a sharp moderation in food prices. Wholesale Price Index (WPI) inflation also declined to -1.21%, reflecting lower prices for key commodities, including food articles, crude petroleum, and metals. The moderation in inflation supports purchasing power, consumption growth, and monetary policy space for investment.
Industrial activity remains robust, with the Index of Industrial Production (IIP) growing 4.0% in September 2025, led by a 4.8% rise in manufacturing. Key contributors include the manufacture of electrical equipment (28.7%), motor vehicles (14.6%), and basic metals (12.3%). Infrastructure and construction goods, consumer durables, and intermediate goods also showed strong growth, reflecting both investment activity and consumption demand.
Employment indicators continue to improve, with the Labour Force Participation Rate reaching 55.4% in October 2025. Female participation increased to 34.2%, and net additions to the Employees’ Provident Fund Organization (EPFO) rose by 21.04 lakh members, demonstrating expanding job opportunities and economic inclusion.
India’s trade sector strengthened, with cumulative exports rising 4.84% to USD 491.80 billion between April and October 2025. Merchandise exports increased to USD 254.25 billion, while services exports expanded 9.75% to USD 237.55 billion, driven by strong global demand for marine products, cereals, dairy, cashew, electronic goods, and IT services.
The success of GST 2.0 reforms, including rationalized rates and broader coverage, contributed to stable revenue collection and increased household consumption. Gross GST collections for October 2025 stood at ₹1.96 lakh crore, up 4.6% from the previous year.
India’s growth outlook remains positive, with the RBI revising FY 2025-26 GDP forecast to 6.8%. Global agencies, including the World Bank, IMF, Moody’s, OECD, and S&P, have similarly upgraded projections, reflecting confidence in India’s resilient domestic demand, structural reforms, and broad-based economic expansion.
India’s strong GDP growth, controlled inflation, robust industrial output, rising employment, and export performance underscore the country’s continued trajectory as one of the fastest-growing major economies globally.
