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India's economy grew at its fastest pace in 18 months in the July-September period, lifted by robust consumer spending and front-loading of production ahead of local festivals and punitive US tariffs.
Strong growth in the world’s fifth largest economy could boost Prime Minister Narendra Modi’s standing domestically and give him room to negotiate a trade deal with the US after Washington imposed tariffs of up to 50 per cent on Indian goods imports, hurting sectors such as textiles, gems and jewellery, and food items.
India’s economy grew at a faster-than-expected pace of 8.2pc in the quarter ended September against a forecast of 7.3pc in a Reuters poll and 7.8pc expansion in the previous quarter, data released yesterday showed.
“The 8.2pc GDP growth in Q2 of 2025/26 is very encouraging. It reflects the impact of pro-growth policies and reforms,” Modi said on X, adding the government will continue to advance reforms.
The Indian government has cut consumer taxes on hundreds of items and implemented long-delayed labour reforms in the last three months as it tries to keep the domestic economy strong in the face of global uncertainties.
“Now we can say comfortably that the full year growth will be either 7pc or to the north of 7pc,” the government’s chief economic adviser V Anantha Nageswaran said at a Press conference after the data was released.
He had earlier projected growth of 6.3pc to 6.8pc.
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