Slightly slower but India's GDP growth likely stayed strong in Q2

A favourable base effect and low deflator growth which boosted the headline figure in Q1 is likely to have continued in Q2 - though less pronounced

Growth in the Indian economy is expected to have maintained its momentum through the September quarter of 2025-26 (Q2FY26), even as the headline number may have slipped below the five-quarter high of 7.8 per cent recorded in the June quarter, according to economists.

 

A favourable base effect and subdued deflator growth, which lifted the Q1 figure, are thought to have persisted into Q2, though to a lesser extent. The impact of steep 50 per cent American tariffs did not fully materialise in the quarter, while front-loading of exports continued. An above-normal monsoon is also expected to have supported agricultural output