New Delhi, Dec 1 (NationPress) India’s economy saw a remarkable growth of 8.2 percent in the July–September quarter, marking the fastest pace in six quarters, even in the face of significant tariffs imposed by the US, indicating a shift away from the era of economic intimidation, according to a report.

While the tariffs impacted shipments to the US, total merchandise and services exports experienced a boost of 5 to 6 percent in this quarter, driven by export diversification and supportive policies, as per a report by India Narrative.

“Production-linked incentives attracted assembly lines for phones, medications, and solar panels, transforming India from an importer into an exporter. Factories, previously reliant on American buyers, adeptly transitioned to new markets,” the report highlighted.

“Investments in infrastructure—where roads have doubled in length and airports have tripled—have reduced logistics costs, enabling companies to remain competitive post-tariff. Fiscal responsibility has curtailed deficits without sacrificing capital investment, stabilizing rates and attracting foreign investment amid global uncertainties,” it continued.

The report also mentioned that exports to the US, which account for about one-fifth of India's total shipments, declined by double digits in key months following tariff increases. However, overall exports rose, supported by increased demand from the Gulf, Europe, Africa, and East Asia.

India's real GDP growth surpassed economists’ predictions of 7.9 percent and represented a significant recovery from 5.6 percent during the same quarter last year.

Nominal growth approached 9 percent, bolstered by easing inflation. The manufacturing sector surged over 9 percent, construction exceeded 7 percent, and services such as finance and real estate grew by double digits.

“Agriculture experienced modest growth in the mid-single digits, highlighting that this economic expansion is driven by factories and urban demand rather than the unpredictability of the monsoon,” the report stated.

The traditional Indian model, heavily reliant on the US, has effectively decoupled to withstand pressures, the report noted, emphasizing that the resilient consumption sector and expanding manufacturing base empower India to negotiate from a position of strength on matters such as digital taxes, trade agreements, and defense.