Indian Economy News

8.2% GDP: India's growth story strengthens

India’s economy is maintaining strong momentum in FY26, supported by robust Gross Domestic Product (GDP) expansion, easing inflation, and sustained improvements in industrial and labour market indicators. Real GDP grew 8.2% in Q2 and 8% in H1 FY26, driven by broad-based gains across agriculture, manufacturing, and services. Inflation softened sharply, with Consumer Price Index (CPI) easing to 0.25% in October 2025, the lowest in the current series, supported by declining food prices and Goods and Services Tax (GST) rate rationalisation. Industrial activity strengthened with the Index of Industrial Production (IIP) rising 4% in September 2025, led by strong growth in manufacturing, basic metals, electrical equipment, and automobiles. The labour market remained resilient, with labour force participation reaching a six-month high of 55.4% and improved hiring trends reflected in the Naukri JobSpeak Index.

External sector performance remained steady, with cumulative merchandise and services exports rising 4.84% in FY26 (April-October 2025). Services exports expanded nearly 10%, underscoring India’s competitiveness in technology-led segments. Government reforms are reinforcing this growth environment, including GST 2.0, Production Linked Incentive schemes, new credit guarantee measures for exporters, and large-scale skill and employment initiatives. Global agencies, including the Reserve Bank of India (RBI), International Monetary Fund (IMF), and World Bank, project growth between 6.5% and 6.8% for FY26, reflecting strong domestic fundamentals. With inflation stabilising, consumption resilient and reforms advancing, India remains firmly positioned on a stable, inclusive and high-growth trajectory.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.