The GDP growth figures of the second quarter have surprised not only the experts of India but the entire world. India’s growth rate is at a 6-month high. The special thing is that this is the 6th time in 14 quarters and the second time in 6 quarters that the growth rate has been seen more than 8 percent. According to experts, the biggest reasons for the improvement in the country’s growth rate in the second quarter of the current financial year are strong demand, increase in service exports and low inflation. The special thing is that Trump’s tariffs have no effect in the first 6 months of the current financial year. On the other hand, interest rates have also been reduced by 75 basis points in these 6 months. Due to which money is saved in the pockets of common people.
Now the biggest question is whether India’s growth rate will continue like this in the next 6 months. That too at a time when the Trump government has imposed tax on India not at 25, 30 or 40 but at full 50 percent? Even though the government has made a big reduction in GST rates to keep money in the pockets of the common people, and has tried to increase consumption, but in view of the possible decline in revenue, government expenditure may be seen in a limited range in the next 6 months. Will this not affect the growth rate of the country? In this, the two largest banks of the country have given their opinion. Let us also tell you what he has said about this.
Growth increased due to domestic demand
According to experts, the 8.2 percent growth in gross domestic product (GDP) in the July-September quarter of the current financial year was possible due to strong domestic demand, strength in services exports and low inflation. He said that this performance shows the strong economic potential of India. The research report of State Bank of India (SBI) said that India’s growth story is touching new, bigger and bolder heights. The highest figure of 8.2 percent in six quarters in the second quarter of the financial year 2025-26 confirms this.
According to experts, private consumption was the mainstay of strong GDP growth in the second quarter, while advance exports in view of US tariffs supported export growth. Exports grew by 5.6 percent, which shows a slowdown on a quarterly basis, but shows improvement on an annual basis, meaning the picture of external demand is mixed. SBI’s research report Ecowrap said that overall trends suggest that GDP growth is mainly driven by domestic demand, supported by expansion in service exports, low inflation and value addition in labour-intensive sectors.
Will American tariffs reduce the pace?
HDFC Bank’s report said that going forward, we expect GDP growth to average around 6.6 percent in the second half, because the base impact will be less, the pace of government spending will be normal, and the impact of high US tariffs and global slowdown will be visible on exports. Anish Shah, Group CEO and MD of Mahindra Group, said that the country’s second quarter GDP growth reflects the depth of domestic demand and the strength of the economy.
Despite challenges such as US tariffs, our manufacturing and services sectors have shown remarkable adaptability. Nirmal Kumar Minda, president of industry organization ASSOCHAM, said that the real growth of GDP in the second quarter of the financial year 2025-26 is another proof of the country’s strong economic resilience. The broad expansion in key sectors and the improvement in domestic demand suggest that policy stability and reforms are translating into real growth.