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Indian Economy Surges with 8.2% GDP Growth, RBI Mulls Rate Decision Amidst Reforms and Trade Challenges

December 01, 2025

India's economy demonstrated robust growth, expanding by 8.2% in the second quarter of fiscal year 2025-26, solidifying its position as the world's fastest-growing major economy. This strong performance has led to upgraded full-year growth forecasts by economists. The Reserve Bank of India (RBI) is set to review its monetary policy, with discussions around a potential rate cut versus a pause given the current economic strength and subdued inflation. Meanwhile, the government is pushing forward with significant economic reforms, including new tax levies and streamlining capital market regulations. However, trade relations with the US face headwinds due to high tariffs impacting Indian exports, and Foreign Portfolio Investors (FPIs) showed outflows in November.

Question 1 of 20

What was India's GDP growth rate in the second quarter (July-September) of 2025-26?

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