GDP likely to grow 7.2% in Q2 FY26, driven by private consumption: Ind-Ra
- IBEF
- November 13, 2025
India’s Gross Domestic Product (GDP) is projected to grow 7.2% YoY in Q2 FY26, led by strong private consumption and resilient domestic demand, according to India Ratings & Research (Ind-Ra). This marks a sharp recovery from the 5.6% growth recorded in Q2 FY25 and follows the 7.8% expansion seen in Q1 FY26, the fastest in five quarters. The agency said private consumption has emerged as the key driver, supported by rising real incomes across income groups, low inflation, and a favourable base effect. On the supply side, a robust services sector and improving goods exports in manufacturing helped sustain momentum.
Ind-Ra expects private consumption to have grown 8% YoY in Q2, up from 7% in Q1, aided by income tax cuts and strong rural wage growth. Investment demand is also estimated to have increased 7.5% YoY, underpinned by continued government capital expenditure. However, the agency noted that nominal GDP growth may have dipped below 8%, signalling a moderation in tax revenue growth that could pose fiscal challenges ahead. Official GDP figures for Q2 FY26 will be released by the National Statistics Office (NSO) on November 28.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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