India's real GDP growth accelerated to an impressive 8.2% in the second quarter of FY 2025-26 (July–September 2025), marking the strongest quarterly expansion in six quarters. This came on the back of 7.8% growth in the previous quarter and 7.4% in the final quarter of the prior fiscal year. The economy crossed the symbolic $4 trillion mark during calendar year 2025, driven primarily by: Strong private consumption and urban demand recovery Robust performance in industry and services Healthy services exports and steady inward remittances Contained inflation and accommodative financial conditions The current account deficit narrowed significantly to just 1.3% of GDP in Q2 FY26, underscoring macroeconomic stability. International institutions have responded with upgraded forecasts: Reserve Bank of India: Revised FY 2025-26 growth to 7.3% (up from 6.8%) IMF: 6.6% for 2025 and 6.2% for 2026 OECD: 6.7% in 2025 and 6.2% in 2026 Asian Development Bank: Upped 2025 forecast to 7.2% Fitch & S&P: Projecting strong momentum into FY26 at 7.4% and 6.7%, respectively India remains the fastest-growing major economy in the world, enjoying what many analysts call a rare "Goldilocks" phase high growth paired with low inflation.
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