New Delhi: India’s economic rise continues to gain momentum, reinforcing its position as a global growth leader. Currently the world’s fourth-largest economy, India is on track to become the third-largest by 2030, with GDP projected to reach USD 7.3 trillion. This growth trajectory reflects strong policymaking, structural reforms, and deeper global integration.
India has once again outperformed major economies, strengthened by resilient domestic demand, improving inflation trends, and increased labour force participation. A revival in domestic investment and positive investor sentiment indicate a stable and broad-based economic environment. With reforms advancing and the consumption outlook remaining positive, India’s growth momentum remains strong across sectors.
Recent GDP data highlights the pace of expansion. India’s real GDP is estimated to grow by 8.2% in Q2 of FY 2025–26, compared to 5.6% in the same period last year. In Q1 of FY 2025–26, growth stood at 7.8%, up from 6.5% a year earlier. Nominal GDP rose by 8.7% in Q2. Sector-wise, the Primary sector recorded 3.1% real GVA growth. In comparison, the Secondary and Tertiary sectors posted strong growth of 8.1% and 9.2%, respectively, supporting the overall economic expansion, according to a PIB India release.
Inflation data from October 2025 show significant relief, highlighting strong economic fundamentals and effective price-stability measures. Headline inflation dropped to 0.25% year-on-year – its lowest in the current CPI series – and remains well within RBI’s tolerance band. The RBI maintained the repo rate at 5.50% with a neutral stance, signalling confidence in the economic outlook.
The decline in inflation was driven by easing food inflation, which registered –5.02%, supported by lower prices of oils, vegetables, fruits, eggs, cereals and related products, along with the recent reduction in GST rates. Rural inflation dropped to –0.25%, while urban inflation stood at 0.88%, reflecting broad-based improvement across regions. The moderated inflation environment is expected to support real consumption, investment, and long-term growth.
Meanwhile, Prime Minister Narendra Modi welcomed the latest GDP performance, highlighting the 8.2% growth recorded in the second quarter of FY 2025–26. He noted that the results reflect the impact of pro-growth policies, reforms, and the efforts of citizens. The PM reiterated the government’s commitment to accelerating reforms, strengthening Ease of Living, and ensuring that growth benefits reach all sections of society.
He said in a post on X: “The 8.2% GDP growth in Q2 of 2025-26 is very encouraging. It reflects the impact of our pro-growth policies and reforms. It also reflects the hard work and enterprise of our people. Our government will continue to advance reforms and strengthen Ease of Living for every citizen.”
