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Indian Economy Surges with 8.2% GDP Growth in Q2 FY26; Moody's Projects Continued Leadership in Emerging Markets

November 29, 2025

India's economy demonstrated robust performance in the second quarter of Fiscal Year 2025-26, registering an impressive 8.2% GDP growth, the fastest in six quarters. This growth surpassed analyst expectations and was primarily fueled by strong manufacturing, services, and private consumption, even amidst ongoing US tariffs. Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman lauded the figures, crediting the government's pro-growth policies. Moody's Ratings further reinforced India's economic outlook, projecting it to lead emerging market growth with a 7% GDP expansion in 2025. Other significant developments include the fiscal deficit reaching ₹8.25 lakh crore till October and Tesla establishing its largest center in Gurugram.

Question 1 of 12

What was India's Gross Domestic Product (GDP) growth rate in the July-September quarter (Q2 FY26), as mentioned in the report?

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