New Delhi: India’s Q2 FY26 GDP print has revealed a broad-based expansion across key sectors, signalling resilient economic momentum despite uneven performances in a few segments. The latest data shows strong traction in manufacturing, services, finance, and household consumption, even as agriculture and govt spending posted moderation.
Manufacturing emerged as the biggest growth driver this quarter, clocking a robust 9.1% expansion, sharply higher than 2.2% YoY, aided by improved industrial output, strong festive demand, and steady export orders. The electricity sector also strengthened, recording 4.4% growth vs 3% YoY, reflecting higher power demand from industry and households.
The services sector maintained its lead, with Trade, Hotels, Transport & Communication expanding 7.4%, up from 6.1% YoY, supported by increased mobility and tourism. The Fin., Real Estate & Prof. Svcs category grew a strong 10.2% compared to 7.2% YoY, driven by credit growth, realty revival, and digital services expansion. Public Admin., Defence & Other Svcs also posted healthy growth at 9.7% vs 8.9% YoY, reflecting continued govt-led economic activity.
On the other hand, agriculture reported a slowdown, growing at 3.5% vs 4.1% YoY, impacted by erratic monsoon patterns. The construction sector also eased to 7.2% from 8.4% YoY, though the pace remains robust.
Private Final Consumption Expenditure (PFCE) rose 7.9%, improving sharply from 6.4% YoY, indicating stronger household demand. Govt Final Consumption Expenditure (GFCE), however, declined 2.7% vs a 4.3% rise last year, reflecting expenditure rationalisation.
Investment activity stayed firm with Gross Fixed Capital Formation (GFCF) at 7.3% vs 6.7% YoY, supported by infrastructure push and increased private capex. Exports strengthened as well, growing 5.6% compared to 3% YoY.
Overall, the Q2 numbers point to a resilient and broad-based economic recovery, with manufacturing and services acting as key pillars of growth.
