New Delhi, India – Prime Minister Narendra Modi on Friday celebrated India's robust economic growth, with the nation's Gross Domestic Product expanding by an impressive 8.2% in the second quarter (July-September) of the 2025-26 financial year. Modi stated this strong performance reflects his government's "pro-growth policies and reforms" and the "hard work and enterprise" of the Indian people. He also pledged continued efforts to advance reforms and enhance the "Ease of Living for every citizen."
India's Economy Leads Global Growth
The 8.2% GDP growth marks a six-quarter high for the Indian economy. This growth rate makes India the world's fastest-growing major economy. Official data released earlier in the day showed significant expansion across key sectors. Finance Minister Nirmala Sitharaman also praised the figures, calling them proof of sustained economic momentum.
Prime Minister Modi shared his views on the social media platform X. He wrote that the 8.2% GDP growth in Q2 of 2025-26 is "very encouraging." He highlighted that it clearly shows the impact of government policies designed to boost the economy. The Prime Minister also acknowledged the crucial role played by the hard work and entrepreneurial spirit of the Indian population.
Policies Drive Economic Momentum
The government attributes this strong economic performance to a range of "pro-growth policies." These include sustained fiscal consolidation, which involves managing government finances responsibly. Targeted public investment has also played a part, directing funds to crucial areas of the economy. Reforms aimed at strengthening productivity and improving the ease of doing business have further boosted the economic environment. Commerce and Industry Minister Piyush Goyal noted that the GDP numbers are a result of consistent and continuous policy efforts under Prime Minister Modi’s leadership.
The robust growth in the July-September quarter was driven by several factors. Manufacturing activity saw a significant increase, contributing strongly to the overall expansion. The services sector also experienced double-digit growth. These two sectors, along with construction, were major drivers. The secondary sector grew by 8.1%, while the tertiary sector saw a 9.2% increase in Q2 FY26.
Strengthening Rural Demand and Investment
Beyond specific sectors, broader economic trends supported the growth. Strong rural demand played a key role in boosting consumption. Increased government spending also contributed to the momentum. Private consumption, which makes up about 57% of India's GDP, rose by 7.9% year-on-year in the July-September period. This was an increase from 7% in the previous quarter.
The government has taken steps to counter external economic challenges and stimulate domestic activity. These measures include cutting consumer taxes on many items. Additionally, long-delayed labor reforms have been implemented in recent months. These efforts aim to maintain a strong domestic economy even when global conditions are uncertain. The Chief Economic Advisor to the government, V. Anantha Nageswaran, expressed confidence that India's full-year growth would reach 7% or higher.
Commitment to Future Reforms
Prime Minister Modi reiterated his government's commitment to further reforms. He stated that the administration "will continue to advance reforms and strengthen Ease of Living for every citizen." This focus aims to ensure that the benefits of economic growth reach all parts of society.
India's economic trajectory has consistently shown resilience. The country’s GDP has surpassed the 7% mark consistently in recent times, even amidst global challenges like geopolitical distress. This trend highlights India's ability to navigate difficulties and achieve sustained economic progress. Looking ahead, the government aims to sustain this growth momentum. It plans to advance reforms that support long-term economic expansion.
The strong Q2 FY26 performance follows a 7.8% GDP growth in the previous quarter (April-June) of FY 2025-26. This consistent performance reinforces India's position as a leading global economy. The government's continued focus on structural reforms, public investment, and improving the business environment is expected to maintain this positive momentum.
