India GDP Growth: India Surprises World With 8.2 Percent GDP Growth Defying US Tariffs
India GDP Growth: Despite facing stringent tariff policies from superpowers like the United States and navigating various international pressures, the Indian economy has once again demonstrated its resilience. The recently released GDP figures for the second quarter of the fiscal year 2025-26 (July-September 2025) show India recording a staggering growth rate of 8.2%. While global economists had predicted a growth rate hovering around 7.4%, India’s actual performance has defied all expectations.
GDP Growth Statistics and Comparison
This unprecedented economic surge marks a significant improvement over the previous year. While the first quarter of the current fiscal year also showed strong results, this leap in the second quarter has undoubtedly brought cheer to investors and policymakers alike. A comparative snapshot is provided below:
| Period | GDP Growth Rate |
|---|---|
| Current FY (2025-26) – Q2 | 8.2% |
| Current FY (2025-26) – Q1 | 7.4% |
| Previous FY – Q2 | 5.4% |
US Tariffs and India’s Response
According to reports, US President Donald Trump had imposed heavy tariffs on India and Brazil. While tariffs on Brazil were subsequently reduced, a massive 50% tariff was maintained on India. Washington likely anticipated that the Indian economy would buckle under this pressure, forcing India to plead for tariff reductions.
However, the reality has proven to be quite the opposite. The 8.2% GDP growth clearly indicates that the US trade war tactics have had little to no negative impact on India’s overall growth trajectory. Conversely, these strong economic figures have now placed India in a much stronger and more advantageous position at the negotiation table.
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Join on TelegramImpact of GST Cuts and Future Outlook
Prime Minister Narendra Modi announced reductions in GST rates in September. Economic analysts believe that the full benefit of this GST cut is not yet fully reflected in the current 8.2% growth figure.
- Q3 Expectations: The third quarter (Q3), running from October to December, coincides with Diwali and the festive season. The combined effect of festive consumer spending and the reduced GST rates is expected to further boost GDP growth rates in the coming days.
IMF Report: Data Quality and Grading
The International Monetary Fund (IMF) recently released a report on the quality of India’s GDP data, assigning India a ‘C’ grade.
- Reason for Grading: The IMF cited that India still uses 2011-12 as the Base Year for GDP calculations, which needs updating. The government is reportedly working on implementing a new base year soon.
- Comparison with China: Interestingly, China also received a ‘C’ grade for data quality. However, in terms of ‘Government Finance Statistics’, India secured a ‘B’ grade, whereas China received a ‘C’. This suggests that in several aspects, India’s government financial data is more transparent than China’s.
