8.2% GDP: India’s Growth Story Strengthens

8.2% GDP: India’s Growth Story Strengthens

 

 

Introduction

 

India’s economy is experiencing a phase of strong and broad-based expansion, marked by high growth, easing inflation, rising production, and improving employment indicators. The country has emerged as one of the fastest-growing major economies globally, supported by domestic demand, policy reforms, and increasing integration with global markets. This growth phase reflects a combination of structural transformation, macroeconomic stability, and sustained public and private investment.

 

Robust GDP Performance

 

Economic output has shown notable acceleration, with real output growth remaining strong across consecutive quarters and half-yearly periods. Expansion has been supported by contributions from all major sectors of the economy. While agriculture has recorded moderate growth, industry and services have displayed sustained momentum, reinforcing overall output expansion. The performance indicates balanced growth rather than dependence on a single sector, strengthening the economy’s resilience to external shocks.

 

Inflation Moderation and Price Stability

 

Price levels have shown a sharp and broad-based moderation, with headline inflation easing significantly on a year-on-year basis. Food prices have played a key role in this decline, supported by improved supply conditions and policy measures. Both rural and urban inflation trends reflect stability, enhancing purchasing power and supporting consumption demand. The easing inflationary environment provides room for policy flexibility while reinforcing macroeconomic confidence.

 

Industrial Production and Manufacturing Revival

 

Industrial activity has continued to strengthen, driven primarily by growth in manufacturing. Key segments such as basic metals, electrical equipment, and transport-related industries have contributed significantly to production gains. From a use-based perspective, strong expansion in infrastructure goods, consumer durables, and intermediate goods highlights simultaneous growth in investment and consumption. This diversified industrial performance underpins sustained economic momentum.

 

Employment and Labour Market Trends

 

Labour market indicators point toward improving participation and stability. Workforce participation has increased, supported by rising employment opportunities across sectors. Female participation has also shown improvement, indicating gradual broadening of labour inclusion. Formal employment additions and hiring indicators suggest strengthening job creation, improved job quality, and growing alignment between skills and market demand.

 

Trade and External Sector Performance

 

The external sector has demonstrated resilience, with both merchandise and services exports contributing to overall growth. Services exports, particularly in knowledge-based segments, continue to be a key driver of external stability. Merchandise exports have benefited from strong demand in selected product categories and markets, even amid global trade uncertainties. Overall trade performance supports foreign exchange earnings and reinforces growth prospects.

 

Policy Support and Structural Reforms

 

Economic momentum has been reinforced by a range of policy initiatives aimed at manufacturing, trade facilitation, skill development, entrepreneurship, and tax reform. Incentive-based manufacturing policies, infrastructure development, and simplified tax structures have strengthened domestic capacity and competitiveness. Labour and skill initiatives have supported workforce readiness, while trade facilitation measures have eased export operations and market diversification.

 

Growth Outlook and Global Confidence

 

Growth projections by domestic and international institutions indicate sustained confidence in the economy’s medium-term trajectory. Upward revisions in growth estimates reflect strong domestic demand, reform momentum, and improved macroeconomic fundamentals. The outlook suggests continued expansion driven by consumption, investment, and productivity gains, positioning the economy for long-term structural growth.

 

Conclusion

 

India’s economic performance reflects a convergence of strong growth, price stability, rising production, and improving employment outcomes. Structural reforms, digital transformation, and policy coordination have strengthened the foundation for sustained expansion. With balanced sectoral contributions and growing global confidence, the economy appears well-positioned to maintain momentum while advancing toward higher productivity, resilience, and inclusive development.

 

 

 

 

Multiple Choice Questions

 

1. India’s real GDP growth in Q2 of FY 2025–26 has been estimated at:
2. 7.2%
3. 7.8%
4. 8.0%
5. 8.2%

 

2. Real GDP growth during the first half (April–September) of FY 2025–26 stood at:
3. 6.1%
4. 6.8%
5. 7.5%
6. 8.0%

 

3. India is projected to become the world’s third-largest economy by:
4. 2027
5. 2028
6. 2030
7. 2032

 

4. The nominal GDP growth rate in Q2 of FY 2025–26 was approximately:
5. 7.5%
6. 8.2%
7. 8.7%
8. 9.1%

 

5. Which sector recorded the highest real GVA growth in Q2 FY 2025–26?
6. Primary sector
7. Secondary sector
8. Tertiary sector
9. Agriculture sector

 

6. Headline CPI inflation in October 2025 eased to:
7. 1.44%
8. 0.88%
9. 0.50%
10. 0.25%

 

7. The sharp moderation in inflation during October 2025 was mainly driven by:
8. Decline in fuel taxes
9. Reduction in food prices
10. Wage compression
11. Import restrictions

 

8. India’s Index of Industrial Production (IIP) registered year-on-year growth of:
9. 2.5%
10. 3.2%
11. 4.0%
12. 4.8%

 

9. Which manufacturing segment recorded the highest growth in September 2025?
10. Basic metals
11. Electrical equipment
12. Motor vehicles
13. Intermediate goods

 

10. Infrastructure and construction goods grew by approximately:
11. 6.5%
12. 8.2%
13. 9.4%
14. 10.5%

 

11. Labour Force Participation Rate in October 2025 reached:
12. 52.5%
13. 54.2%
14. 55.4%
15. 56.8%

 

12. Net addition of EPFO members in July 2025 was about:
13. 15.6 lakh
14. 18.2 lakh
15. 21.04 lakh
16. 24.7 lakh

 

13. India’s cumulative exports (merchandise and services) during April–October 2025 grew by:
14. 2.9%
15. 3.7%
16. 4.84%
17. 6.2%

 

14. Services exports growth during April–October 2025 was approximately:
15. 6.3%
16. 7.8%
17. 9.75%
18. 11.4%

 

15. The RBI revised its GDP growth forecast for FY 2025–26 to:
16. 6.3%
17. 6.5%
18. 6.7%
19. 6.8%