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Indian Economy Growth: The growth rate figures of the Indian economy are going to be revealed soon. Earlier, the rating agency has estimated the growth rate figures for the second quarter. The agency says that private consumption will remain strong in July-September also.
New Delhi. Do you remember that America’s President Donald Trump had recently claimed that the economy of India and Russia is dead. After this claim, India’s opposition also created a lot of uproar against the government. But, soon milk will become milk and water will become water. The actual figures of growth rate for the second quarter (July-September) of the current financial year are going to be revealed at the end of November. Earlier, global rating agency India Ratings and Research has estimated the growth rate for the second quarter.
India Ratings and Research has estimated India’s GDP to grow at the rate of 7.2 percent in the second quarter of the current financial year 2025-26, in which the biggest impact will be seen from the increase in private consumption. The growth rate in the first quarter of the financial year was more than 8 percent. If we look at the figures of a year ago, the Indian economy grew at the rate of 5.6 percent in the second quarter (July-September) of the financial year 2024-25.
Fastest growth rate in 5 quarters
The rating agency said that India’s real gross domestic product (GDP) is expected to grow at the fastest pace in five quarters i.e. 7.8 percent in the current financial year. Real GDP is based on the base year 2011-12. The National Statistical Office (NSO) will release official data on GDP growth projections for the second quarter of financial year 2025-26 on November 28.
Who has more impact on growth rate?
The rating agency said that it expects the GDP growth rate to remain strong at 7.2 percent on an annual basis in the second quarter of the financial year 2025-26. Paras Jasrai, economist and executive director of India Ratings and Research, said that from the demand side, private consumption is a key driver of growth due to increase in stable real incomes of both high and low income households. Favorable base-based goods export growth in the manufacturing sector along with a strong services sector boosted supply side GDP growth during Q2FY2025-26.
8 percent jump in private consumption
The rating agency said that in the second quarter of the financial year 2025-26, private consumption will grow at the rate of 8 percent on an annual basis. It was 7 percent in the first quarter and 6.4 percent in the second quarter. The income tax cut announced in the budget has also boosted consumption demand. If purchase decisions had not been postponed due to rationalization of Goods and Services Tax (GST) rates, private consumption would have grown even faster. In the second quarter, investment demand grew at a strong rate of 7.5 percent on an annual basis. Government capital expenditure is playing an important role in this.
