India GDP Growth 2025: Q2 at 8.2%, Strong Manufacturing, Services Boost Half-Year Growth to 8%
India GDP growth 2025 surged to 8.2% in Q2 FY 2025-26, driven by strong secondary and tertiary sectors. This explainer breaks down sector trends and key data.
India GDP Growth 2025: Q2 Expands 8.2% as Secondary and Tertiary Sectors Lead Economic Surge
TheInterviewTimes.com | 28 November 2025, 19:47 IST: India’s economy registered a strong expansion in Q2 FY 2025-26, with real GDP rising 8.2%, a significant jump from 5.6% in the same quarter last year. The new data released by the National Statistics Office (NSO) highlights broad-based growth supported by robust manufacturing, construction, financial services and overall services activity. This quarterly momentum also pushed half-year (H1) GDP growth to 8.0%, indicating sustained recovery across major sectors.
Prime Minister Modi Welcomes Growth Numbers
Prime Minister Shri Narendra Modi welcomed the latest economic performance, calling the 8.2% growth figure “very encouraging.” He noted that the strong Q2 numbers reflect the combined impact of the government’s pro-growth reforms and the efforts of Indian citizens across sectors. Modi said the administration will continue to strengthen Ease of Living and ensure the benefits of growth reach every citizen.
“The 8.2% GDP growth in Q2 of 2025-26 is very encouraging. It reflects the impact of our pro-growth policies and reforms. It also reflects the hard work and enterprise of our people. Our government will continue to advance reforms and strengthen Ease of Living for every citizen.”
The 8.2% GDP growth in Q2 of 2025-26 is very encouraging. It reflects the impact of our pro-growth policies and reforms. It also reflects the hard work and enterprise of our people. Our government will continue to advance reforms and strengthen Ease of Living for every citizen.
— Narendra Modi (@narendramodi) November 28, 2025
What the New GDP Numbers Reveal
The latest GDP release shows that India’s growth trajectory remains strong, with gains coming from higher consumption, expanding industrial output and a vibrant services sector. The NSO data also indicates steady improvement in the broader macroeconomic environment, signalling rising confidence in both domestic and external markets.
Some of the key headline numbers include:
- Real GDP growth: 8.2% in Q2
- Nominal GDP growth: 8.7% in Q2
- Half-year real GDP growth (H1): 8.0%, up from 6.1% last year
- Real PFCE (private consumption) growth: 7.9% in Q2
These indicators reflect improving consumer demand and stronger production cycles across sectors.
Sector-Wise Performance: Manufacturing and Services Fuel the Upswing
India’s growth story in Q2 is driven by a solid showing in both the secondary and tertiary sectors. The secondary sector benefited from higher industrial output, while the tertiary sector continued to deliver robust expansion through financial and professional services.
The secondary sector showed strong recovery, led by:
- Manufacturing: 9.1%
- Construction: 7.2%
- Electricity, gas and utilities: 4.4%
On the services side, momentum was even stronger as the tertiary sector grew 9.2%, supported by:
- Financial, real estate and professional services: 10.2%
- Trade, hotels, transport and communication: steady expansion
- Public administration and defence: moderate growth
Agriculture and allied activities, part of the primary sector, grew at 3.5%, showing stable but slower improvement compared to high-growth industries.
Must Read: Supreme Court Orders New Online Content Regulation Framework to Curb Obscenity and Discrimination
Quarterly and Half-Yearly Estimates: Understanding the Economic Signals
A deeper look at the national accounts shows that the economy continues to expand steadily, supported by balanced growth across production and consumption. Real GDP in Q2 stood at ₹48.63 lakh crore, while nominal GDP reached ₹85.25 lakh crore, reflecting an economy expanding not only in real terms but also in value.
Key aggregates include:
- Real GVA in Q2: ₹44.77 lakh crore (8.1% growth)
- Real GDP in H1: ₹96.52 lakh crore (8% growth)
- Nominal GDP in H1: ₹171.30 lakh crore
- Nominal GVA in H1: ₹155.94 lakh crore
These figures show that India’s growth is broad-based and consistent across both quarters of the fiscal year so far.
The NSO also confirmed that India is transitioning to a new GDP base year (FY 2022-23), with revised quarterly estimates scheduled for 27 February 2026.
How India’s GDP Is Estimated: The Data Behind the Numbers
The quarterly estimates rely on the benchmark-indicator method, drawing from a wide range of high-frequency indicators that capture economic activity across agriculture, industry and services. This methodology ensures that GDP calculations remain aligned with latest production and consumption trends.
Major indicators used for compiling GDP include:
- Crop and horticulture production estimates
- Livestock and fishery output
- Production of coal, crude oil, natural gas, cement and steel
- Quarterly financial results of listed companies
- IIP (Index of Industrial Production)
- Rail, air and port transport data
- GST collections and government expenditure
This systematic, data-backed process enhances the reliability of India’s national accounts.
Key Takeaways
- India’s GDP grew 8.2% in Q2 FY 2025-26, driven by strong manufacturing and services.
- Prime Minister Modi welcomed the growth, calling it a reflection of reforms and citizens’ efforts.
- Half-year GDP growth reached 8.0%, rising sharply from last year’s 6.1%.
- Manufacturing grew 9.1% and services rose 9.2%, showing broad-based economic strength.
- Agriculture posted moderate 3.5% growth.
- India will shift to a new GDP base year (2022-23) for future estimates.