India has delivered one of its strongest economic performances in recent years as the latest GDP data for the July–September quarter (Q2 of FY 2025-26) came in far above all expectations. The data, released on November 28 after market hours, shows India’s GDP surging at 8.2 percent, outperforming every major forecast by domestic and international agencies.

The official GDP figure was published by the government’s statistical department around 4 PM, triggering instant reactions across financial markets, economists, and global observers.

Earlier estimates had projected India’s GDP to grow around 7.3 percent, already considered a strong number. However, the actual figure of 8.2 percent has surprised markets globally, marking one of India’s most impressive quarterly growth numbers in recent years. Last quarter, India posted 7.8 percent growth, and the new number indicates a consistent upward trend.

With this, India has now recorded a hat-trick of stronger-than-expected GDP figures. In the previous cycle, Q4 had delivered 7.4 percent against an estimate of 6.7 percent, followed by Q1 which posted 7.8 percent against 6.6 percent. For three consecutive quarters, India has beaten all projections, reinforcing its status as the fastest-growing major economy in the world.

The latest data shows massive improvement compared to earlier periods when India reported three consecutive quarters of weaker-than-expected numbers. Those phases are now replaced by strong upside surprises, indicating a significant turnaround in the economic cycle.

Forecast trends have also shifted notably. Earlier growth expectations for India hovered around the 6–6.5 percent range. Now, official and private forecasts have moved upward to the 7 percent range, fueled by strong performance across sectors and rising domestic consumption.

In terms of forecasts, almost every major institution underestimated the latest surge. RBI projected 7 percent, SBI estimated 7.5 percent, HDFC Bank forecast around 7, while Nomura and HSBC estimated between 6.8 and 7.3 percent. None came close to the actual 8.2 percent figure, highlighting the scale of the upside surprise.

One of the key contributors to this exceptional growth is the rise in consumption triggered by GST rate cuts in recent months. Economists note that consumption impact often takes time to reflect in economic data, and the latest figures suggest that the benefits are finally materializing. The government’s policy decisions in indirect taxation seem to be fueling broader economic momentum.

Sector-wise, the secondary sector grew 8.1 percent, driven strongly by a spectacular 9.1 percent expansion in manufacturing. Construction grew 7.2 percent, reflecting strong infrastructure activity. The services sector posted robust growth of 9.2 percent, signaling strong post-pandemic recovery momentum and rising discretionary spending.

Private consumption recorded a healthy 7.9 percent rise, while agriculture grew 3.5 percent. Mining remained the weakest category, registering minimal growth of just around 0.04 percent, continuing its trend as the most underperforming sector.

The broader global context further highlights India’s exceptional performance. Among the world’s top economies, the United States is growing around 2 percent, China around 4.8 percent, Japan around 1.1 percent, Germany near 0.2 percent, and the UK and Canada around 1 percent. India’s 6.6 to 8.2 percent growth range remains unmatched in the group of major economies.

The data strengthens India’s position as a high-growth economy that continues to attract global investor interest. Foreign investors remain focused on India due to its demographic advantage, rising consumption, policy stability, and improving macroeconomic fundamentals.

Market experts believe consistency is the key. India has touched 8 percent GDP growth in the past but struggled to maintain it. The next two quarters will determine whether India can sustain momentum above 7 percent for the full year. If India delivers even around 7 percent growth in the remaining quarters, the full-year average could settle comfortably around 7 percent, higher than earlier expectations of 6.5 percent.

The strong GDP numbers immediately impacted market sentiment as Gift Nifty reacted sharply positive after reopening post 4:30 PM. The index displayed a large upward breakout with a strong green candle on the charts, signaling that markets have initially given a thumbs-up to the GDP surprise.

Traders noted that if no negative global or domestic news emerges over the weekend, markets could open strongly on Monday and possibly retest all-time highs. However, volatility may persist due to global developments and geopolitical risks.

The next major event to watch is the upcoming RBI monetary policy meeting in the first week of December. With GDP growth now far above earlier projections, analysts are eager to see whether the RBI revises its GDP outlook and what tone it takes regarding inflation, interest rates, and economic stability.

Overall, India’s latest GDP data marks a significant moment for the economy. With 8.2 percent growth, strong sector performance, rising consumption, and positive market sentiment, India continues to strengthen its position as the world’s fastest-growing major economy. The challenge now lies in maintaining consistency in the remaining quarters to deliver an overall strong performance for the financial year.