India's GDP Grows 8.2% in Q3 2025-26 — Fastest Among G20 Economies for Third Consecutive Quarter
India maintained its position as the world's fastest-growing major economy with GDP growth of 8.2% in Q3 2025-26, driven by strong manufacturing, construction and services sectors, with the RBI now projecting full-year growth above 7.5%.
Representative image. Photo: Nationalism News
India's gross domestic product grew 8.2% in the third quarter (October-December 2025) of fiscal year 2025-26, the National Statistical Office confirmed on Friday — the fastest growth rate among all G20 economies and the third consecutive quarter of 8%+ expansion.
Manufacturing output grew 11.4%, the highest rate in three years, driven by strong export orders in pharmaceuticals, chemicals, textiles and engineering goods. The construction sector expanded 14.2% on the back of the government's record infrastructure push and a booming real estate market.
Services, which account for 54% of India's GDP, grew 7.8%, led by IT services exports, financial services and the hospitality sector which saw tourism revenues cross Rs 8.5 lakh crore for the full fiscal year.
The data reinforces India's position as the world's fastest-growing major economy — ahead of China (5.1%), the US (2.8%) and the EU (1.7%). The IMF has already revised India's FY2026-27 growth forecast upward to 7.4% following the RBI's rate cut this week.
Finance Minister Sitharaman called the GDP data "a vindication of India's economic strategy" and said the combination of infrastructure investment, manufacturing push under PLI schemes, and digital economic growth was now delivering results that had been "dismissed as optimism just 3 years ago."
However, economists cautioned that rural distress, youth unemployment (20.3% for 15-29 year olds) and private sector investment remaining below pre-pandemic peaks remain critical challenges. "India is growing fast but not growing inclusively enough," said a former Chief Economic Adviser.
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