CEA Nageswaran (File Photo)

Following the spectacular GDP numbers for Q2 showing 8.2 per cent expansion, Chief Economic Advisor V. Anantha Nageswaran said on Friday that India’s full-year growth is likely to touch 7% or even higher. He added the latest data confirms that India continues to grow faster than major global economies.

CEA added that the first half of FY26 delivered 8% real GDP growth, setting the stage for full-year expansion of “7% or more than 7%”.

Nageswaran comments came in the press briefing following the surprising GDP numbers for the July-September quarter, as India’s economy expanded 8.2%, followed by 7.8% in Q1`FY26.

Nageswaran said agricultural output for 2024-25 signals a record harvest, non-food credit growth has improved, and high-frequency indicators such as PMI readings and freight movement point to sustained activity. He also highlighted firm rural and urban demand and said stable inflation had helped support household savings.

At the same time, he flagged areas that need attention. He said electricity consumption trends should be monitored closely, and pointed to softer merchandise exports. He explained that higher US tariffs on Indian goods have had an impact despite exporters’ efforts to diversify markets, which contributed to the 12% year-on-year drop in October exports.

Nageswaran said the third quarter had begun on a solid note and the employment situation “remains steady”. He added that India’s economic performance continued to support global growth.

India GDP Expansion In Q2

The Indian economy had grown at 5.6% in the September 2024 quarter (Q2 FY25), which was a seven-quarter low, and rebounded to 7.8% in the previous quarter (Q1 FY26).

“Real GDP or GDP at Constant Prices in Q2 of FY 2025-26 is estimated at Rs 48.63 lakh crore, against Rs 44.94 lakh crore in Q2 of FY 2024-25, registering a growth rate of 8.2%,” the National Statistical Office said in a statement on November 28.

Real GVA, which is GDP minus net product taxes and reflects growth in supply, is estimated at Rs 44.77 lakh crore in Q2 FY26, against Rs 41.41 lakh crore in Q2 of FY 2024-25, registering a growth rate of 8.1%, according to the latest data released by the NSO.

Prime Minister Narendra Modi welcomed the latest economic data, calling the 8.2% GDP growth in the second quarter of 2025–26 “very encouraging.”

The Prime Minister said the numbers “reflect the impact of our pro-growth policies and reforms” and highlight “the hard work and enterprise of our people.”