Economists expect India’s GDP to grow around 7.3% in Q2 (July–September FY26), supported by strong rural performance and higher government spending. Estimates range between 6.9% and 7.7%, signalling broad optimism about the economy’s momentum.
What’s Driving the Growth
1. Rural Economy Shows Strength
Stronger rural consumption and steady agricultural activity have significantly contributed to the quarter’s growth.
2. Government Capex Push
Higher infrastructure spending by the government boosted construction activity and capital goods demand, lifting overall output.
3. Support From Exports & Industry
Early export shipments and improved manufacturing activity added further momentum to economic expansion.
Why This Matters for Markets & Investors
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The numbers underline resilient domestic demand, especially in rural areas.
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Infrastructure-linked sectors may continue to benefit from sustained government capital expenditure.
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Industrial and export-driven sectors could also maintain momentum, depending on global conditions.
What Investors Should Watch
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The official GDP data will be released by the NSO on 28 November 2025.
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Whether growth is broad-based across sectors will determine its durability.
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External risks such as global trade issues, commodity volatility, or market corrections may influence momentum ahead.
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Transition from public-sector driven growth to private investment will be key for the next phase.
India appears to be maintaining a strong growth trajectory, with Q2 forecasts pointing to 7.3% expansion powered by rural demand and government spending. For investors and advisors, the outlook remains constructive, especially for sectors linked to consumption, infrastructure and industrial activity—while remaining mindful of global risks.
Source: The Economic Times