India on track to be the fastest-growing major economy for yet another year

In many ways, the second quarter of 2025-26 (Q2FY26) was sprinkled with multiple mixed signals in different pockets: Consumption momentum was on a stop-and-start mode, impacted by heavy monsoons in some parts in the quarter, goods and services tax (GST) announcements in August triggered delayed purchase decisions in multiple segments and while jump in festival season sales reflected strong consumption demand in the economy, it overlapped with only ten days in the second quarter.

- RAJNI THAKUR

On the manufacturing side, while exporters dealt with tariff uncertainties, frontloading of production plans ahead of various deadlines combined and higher investments and manufacturing production, along with several production lines reporting delayed runs due to heavy rains gave mixed signals. Similarly, while kharif sowing trends were running very strong, heavy rains in key grain producing states cast a doubt over the output expectations in the agricultural sector.