Source TOI

India’s economic momentum accelerated sharply, with GDP growing 8.2%, marking the fastest pace in six quarters and reinforcing the country’s position as one of the world’s strongest major economies. The latest data, released by the National Statistical Office (NSO), indicates broad-based expansion driven by resilient domestic demand, robust manufacturing activity, and steady government spending.

Manufacturing and Construction Lead the Upswing

The manufacturing sector posted strong gains after several subdued quarters, supported by improved capacity utilisation, easing input costs, and a rebound in exports. Construction activity also expanded at a healthy pace, fuelled by infrastructure projects, real estate recovery, and sustained capital expenditure by both the Centre and states.

Economists note that this combination of industrial strength and capital formation highlights a structural shift from consumption-driven to investment-led growth.

Services Sector Remains a Backbone

The services sector—particularly financial services, hospitality, and transport—continued to maintain solid growth, reflecting post-pandemic normalisation and rising urban demand. Digital services and IT-related exports showed resilience despite global economic uncertainties.

Consumer Demand Steady but Mixed

Private consumption, a key pillar of the economy, grew moderately. While urban demand improved due to rising incomes and festive-season spending, rural consumption remained patchy amid uneven monsoon patterns and subdued farm incomes. Analysts say a revival in rural purchasing power will be critical for sustaining momentum in the coming quarters.

Inflation Eases, But Risks Persist

Cooling inflation, especially in core categories, provided relief to households and opened room for policy stability. However, elevated food prices and global commodity fluctuations remain potential risks. Economists warn that any sharp increase in crude oil prices could impact both inflation and fiscal math.

Investment Cycle Strengthens

Gross fixed capital formation—a measure of investment—grew strongly, underlining private sector participation alongside public capex. Corporate balance sheets remain healthier, and credit growth to industry has picked up, signalling confidence in long-term prospects.

Global Context and Outlook

India’s 8.2% growth stands in stark contrast to slowing economic trends in major advanced economies and China. The IMF and World Bank have repeatedly highlighted India as a key driver of global growth.

Looking ahead, analysts expect growth to moderate slightly due to base effects and potential external challenges, but remain upbeat about medium-term prospects. Structural reforms, digitalisation, strong financial sector fundamentals, and a young labour force continue to underpin India’s economic resilience.

Conclusion

The 8.2% GDP growth rate paints an encouraging picture of the Indian economy—marked by manufacturing revival, investment uptick, and sustained services momentum. While challenges persist in rural demand and inflation risks, the latest data signals that India’s growth story remains firmly on track, with the country poised to maintain its status as the world’s fastest-growing major economy.