India's economy grows 8.2% July-September

India's economy grew 8.2% year-on-year in July-September, accelerating from the 7.8% growth reported in the previous quarter, as strong consumer spending and manufacturing remained key drivers amid global trade uncertainties.

Economists polled by Reuters had forecast a 7.3% expansion for the quarter ended September, a period when the U.S. imposed an additional 25% punitive tariff on Indian exports, raising the total levy to 50%.

Growth has exceeded expectations dramatically to 8.2%, led by statistically favourable deflator effects, lagged effects of monetary and regulatory easing and a limited hit so far on India's exports.

Some of these factors will spill over to Q3 as well, along with improvement in consumer demand, leading to FY26E GDP comfortably hugging 7%+ print.

-Meenakshi Maidas/Reuters