Strong Growth Momentum
India's economic growth in Q2FY26 exceeded 7% year-on-year. This robust performance was fueled by a combination of factors, including strong rural demand, increased public spending, and a period of relatively soft inflation.
Upgraded Outlook
The World Bank has revised its FY26 GDP growth forecast for India upwards, now projecting a growth rate of 6.5%. This reflects increasing confidence in India's economic trajectory.
High-Frequency Indicators
Several high-frequency indicators point to continued economic strength:
- Auto sales: +5.2%
- Diesel consumption: +6.4%
- Petrol consumption: +7.5%
- E-way bill generation: Up 21.1% y/y
Festive Demand
Anticipated GST cuts and the upcoming festive season are expected to drive Diwali 2025 sales above ₹4.75 trillion. The apparel and durables sectors are projected to be the primary drivers of this surge in spending.
Broad-Based Resilience
Data spanning various sectors, from mobility to manufacturing, indicates sustained growth across the Indian economy.
India's growth story is underpinned by a potent combination of confidence, strong consumption, and strategic capacity expansion.