The Indian economy grew 8.2% in the July-Sept quarter as a strong comeback by the manufacturing sector and robust services activity helped it clock the fastest pace of expansion in six quarters.Strong domestic demand, which drove factories to produce more ahead of the festival season, helped India remain the fastest growing major economy and shrug off the impact of US tariffs.

Apart from GST, the govt is also banking on reform measures such as the new labour
codes to boost sentiment and further spur economic activity in the months ahead, with
low inflation and falling interest rates adding to the positive sentiment.

Manufacturing posted a sharp turnaround, clocking 9.1% growth in the second quarter of
the current financial year, with service sectors seeing faster expansion. Construction too
grew 7.2%, although a tad slower than July-Sept 2024. Agriculture too reported a 3.5%
increase on the back of a 4.1% expansion in Q2 of the last fiscal year.