The Indian economy beat forecasts to grow 8.2 per cent year-on-year in the July-September period, driven by higher spending and robust manufacturing despite high US tariffs and global trade headwinds.
Government data released on Friday showed a six-quarter high growth in the second quarter as compared with the 7.8 per cent growth of the preceding three months, and the 5.6 per cent growth logged in the year-ago period.
The data shows growth that defied a recent poll by economists conducted by a leading international news agency, which had pegged the country’s economy to show a 7.3 per cent expansion for the quarter ended September, a time period that coincided with US tariffs of 50 per cent on Indian goods to come into effect.
The Centre had introduced massive Goods and Services Tax (GST) cuts in September to counter high US tariffs and boost consumer spending, a move that seems to have paid off well as private consumer spending, which accounts for about 57 per cent of the GDP, rose 7.9 per cent year-on-year in the second quarter, higher than the 7.0 per cent growth in the previous quarter.
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Meanwhile, manufacturing, which makes up 14 per cent of India’s Gross Domestic Product, rose by 9.1 per cent in Q2, up from 7.2 per cent in the same quarter last financial year, the government data further revealed. It was also higher than the 7.7 per cent growth logged a quarter ago.
While government spending declined 2.7 per cent year-on-year in the second quarter as compared to growth of 7.4 per cent in the previous quarter, the Centre expects strong demand, robust public spending, and lowering inflation to help the country tide over trade uncertainties in the next fiscal as well.
With retail inflation declining to a record low of 0.25 per cent in October, there are expectations that the Reserve Bank of India (RBI) may announce another interest rate cut in its December meeting.
Govt to release October IIP data on Dec 1
An official statement by the government said on Friday that India’s industrial production data for October 2025 will be released on December 1.
The All India Index of Industrial Production (IIP) data is usually released on the 28th of every month or the next working day if the 28th is a holiday. But, since the release of the Quarterly Estimates of Gross Domestic Product for the second quarter (July–September) of 2025-26 is to coincide with the IIP release, the publication of the All India IIP for October 2025 has been rescheduled.
“Accordingly, the IIP for October 2025 was scheduled to be released on 28th November 2025,” the statement said, adding, “It is hereby informed that the IIP for October 2025 will now be released on 1st December 2025 at 4:00 PM.”
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