Leaders hail India’s 8.2% Q2 GDP growth as global milestone
As India’s economic momentum strengthened further in the September quarter, with official data revealing that the real GDP grew 8.2 per cent in Q2 of FY 2025-26, political leaders on Saturday said the milestone reflects a remarkable achievement. They added that this positions India as a leading performer in the global economy.
The latest GDP growth figure is a testament to the country’s resilience and ability to navigate through global economic uncertainties. The 8.2 per cent growth rate is not only higher than the previous quarter’s 7.8 per cent but also surpasses the expectations of many economists. This impressive growth is a result of the government’s efforts to boost economic activity, improve business environment, and increase investments in key sectors such as infrastructure, manufacturing, and services.
The GDP growth is broadly based, with all sectors contributing to the expansion. The agriculture sector grew at 4.6 per cent, while the industry sector expanded by 9.8 per cent. The services sector, which accounts for a significant share of the country’s GDP, grew at 8.5 per cent. This broad-based growth indicates that the economy is on a strong footing, with all sectors contributing to the country’s overall growth.
The high growth rate is also reflected in the strong performance of the industrial sector. The Index of Industrial Production (IIP) grew at 6.8 per cent in September, indicating a significant pickup in industrial activity. The manufacturing sector, which accounts for a significant share of the IIP, grew at 7.5 per cent. This is a positive sign, as the manufacturing sector is a key driver of economic growth and employment.
The services sector, which includes financial services, logistics, and tourism, also performed well, with a growth rate of 8.5 per cent. This sector is a significant contributor to the country’s GDP and employment, and its strong performance is a testament to the country’s growing economy. The sector’s growth is driven by the increasing demand for services, both from domestic and international markets.
The strong GDP growth is also reflected in the country’s fiscal performance. The government’s revenue collections have been strong, with a growth rate of 15.5 per cent in the first six months of the fiscal year. This is a positive sign, as it indicates that the government’s fiscal position is strong, and it will be able to meet its expenditure commitments.
The 8.2 per cent GDP growth rate is not only a national achievement but also a global milestone. It positions India as one of the fastest-growing major economies in the world, surpassing the growth rates of many developed and developing countries. This is a significant achievement, as it reflects the country’s growing economic influence and its ability to navigate through global economic uncertainties.
The high growth rate is also a reflection of the country’s demographic dividend. India has a large and young population, with a significant share of the population in the working age group. This demographic dividend provides a significant opportunity for the country to grow and develop, as the young population is more productive and has a higher potential to contribute to the economy.
The government’s policies and reforms have also played a significant role in achieving this high growth rate. The government has implemented a series of reforms, including the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC), and the ease of doing business initiative. These reforms have improved the business environment, increased transparency, and reduced corruption.
The high growth rate is also a reflection of the country’s growing entrepreneurship and innovation. The startup ecosystem in India is thriving, with many startups emerging in various sectors, including technology, healthcare, and finance. This is a positive sign, as it indicates that the country is moving towards a more innovative and entrepreneurial economy.
However, despite the high growth rate, there are still challenges that need to be addressed. The country’s unemployment rate is still high, and the growth is not yet inclusive. The government needs to focus on creating more jobs and ensuring that the growth is more broad-based and inclusive.
In conclusion, the 8.2 per cent GDP growth rate is a significant achievement, and it reflects the country’s growing economic influence and its ability to navigate through global economic uncertainties. The government’s policies and reforms have played a significant role in achieving this high growth rate, and the country’s demographic dividend provides a significant opportunity for future growth. However, there are still challenges that need to be addressed, and the government needs to focus on creating more jobs and ensuring that the growth is more broad-based and inclusive.
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