Overview
- Official NSO data show real GDP rose 8.2% year on year in July–September, with nominal GDP up 8.7% and first-half real growth at 8.0%.
- Manufacturing grew 9.1% and services 9.2%—including 10.2% in financial, real estate and professional services—while private consumption rose 7.9% and government spending fell 2.7%.
- Economists point to GST rate cuts taking effect on September 22 and front‑loaded factory output for the festive season as key drivers of the surprise.
- Chief Economic Adviser V. Anantha Nageswaran said full‑year growth should be 7% or higher, but cautioned that higher US tariffs are weighing on exports, citing an October merchandise export decline.
- A low GDP deflator kept nominal growth subdued, raising fiscal‑math challenges, as attention turns to the December RBI policy review and a rescheduled October IIP release on December 1.