New Delhi, Nov 28 (NationPress) The gross domestic product (GDP) growth rate averaged 8 percent during the first half of the financial year (H1 FY26), leading economists to project that India's GDP growth for FY26 will fall between 7.4 percent and 7.6 percent.

In light of the Ministry of Statistics data revealing a robust 8.2 percent GDP growth for the second quarter (Q2 FY26), which exceeded expectations for the second time in a row following a strong 7.8 percent growth in the first quarter, Aditi Gupta, an economist at Bank of Baroda, remarked that with an 8 percent growth in H1 FY26, India’s economic foundation remains strong, and the outlook for the second half appears encouraging.

"We anticipate GDP growth within the 7.4-7.6 percent range for FY26," she stated.

Gupta highlighted that early indicators show a marked increase in consumption demand, primarily due to the rationalization of the Goods and Services Tax (GST), which coincided with the festive season.

This momentum is expected to carry into the third quarter.

"Auto sales surged during the festive season, with both passenger vehicle and two-wheeler sales reaching record levels. Urban demand is also on the rise, evidenced by improved non-oil-non-gold imports," Gupta added.

Considering the recent GDP growth figures, Crisil has adjusted its FY26 GDP forecast upward to 7 percent from 6.5 percent, following a robust 8 percent performance in the first half.

India’s real GDP growth of 8.2 percent in Q2 surpassed expectations, although the nominal figure was more modest at 8.7 percent.

The gap between real and nominal growth is the narrowest since the third quarter of FY2020.

"Private consumption was pivotal in driving higher real growth. On the supply side, both manufacturing and services experienced substantial growth," remarked Dharmakirti Joshi, Chief Economist at Crisil Ltd.

Joshi also noted that the upcoming third quarter is likely to benefit from these favorable conditions.

While government investment is expected to stabilize, there are signs of a delayed uptick in private investments.

Furthermore, the reduction in GST rates is enhancing private consumption, which is complemented by lower income tax and interest rates, a result of the Monetary Policy Committee’s repo rate cuts earlier this year.

Meanwhile, Assocham views the strong real GDP growth of 8.2 percent in Q2 as a testament to the country's economic resilience.

"This improvement over the previous financial year’s Q2 growth of 5.6 percent and its surpassing of expectations underscores the robustness of India's economic fundamentals," stated Nirmal Kumar Minda, its President.

The broad-based growth across key sectors and the rise in domestic demand indicate that policy stability and reforms are yielding tangible growth.

Even amidst global challenges, the government has maintained resilience and confidence, positioning India among the world's fastest-growing major economies, Minda added.

PHDCCI President Rajeev Juneja pointed out that the expansion was primarily driven by the tertiary sector, followed by the secondary sector.

Manoranjan Sharma, Chief Economist at Infomerics Valuation and Ratings Ltd, highlighted that India’s Q2 GDP growth is achieving its strongest pace in six quarters.

"This growth was supported by a resilient rural economy, increased government spending, and expedited export shipments. Although private sector capital formation remained subdued, the combination of rural demand and public expenditure provided a significant boost to overall economic activity," Sharma emphasized.