8.2% GDP surprise

'VERY ENCOURAGING': FASTEST IN SIX QUARTERS DESPITE US TARIFFS

- MPOST BUREAU

India's economy grew at a higher-thanexpected 8.2 per cent - the fastest pace in six quarters - in July-September, as front loading of production ahead of GST rates cut boosted consumption that helped offset the impact of steep US tariffs.

The 8.2 per cent gross domestic product (GDP) growth, which follows a 7.8 per cent expansion in the preceding April-June quarter, helped India retain the title of the world's fastest growing major economy, according to official data released on Friday.

The GDP growth came ahead of the festive season consumption boost on the back of the implementation of a significant reduction in the goods and services tax (GST). It, however, does not factor in the full quarter impact of an additional 25 per cent punitive tariff on Indian exports that took the total levy to 50 per cent in August.

The expansion, which was more than China's 4.8 per cent, was driven by higher public investments, services demand, industrial output and firm consumption, besides statistical effects of a low base (the economy grew at a below-average 5.6 per cent in the same quarter last fiscal).

A low GDP deflator also lent some buoyancy. Inflation based on both the Consumer Price Index and the Wholesale Price Index was lower in the second quarter compared to the first. Lower food inflation stoked discretionary spending. Prime Minister Narendra Modi termed the GDP growth as "very encouraging."

"It reflects the impact of our pro growth policies and reforms. It also reflects the hard work and enterprise of our people. Our government will continue to advance reforms and strengthen Ease of Living for every citizen," he said in a post on X.