Current Affairs - Economy - Discussion

India’s real GDP growth for Q2 FY26 is estimated at 7.2%, reflecting a strengthening economic environment supported by robust private consumption, steady services sector performance, and sustained investment demand. Private consumption saw improved momentum due to rising real incomes, rural wage growth, low inflation, and tax relief measures from the FY26 Budget. On the supply side, both services and manufacturing contributed to higher output, aided by lower input costs. Investment activity remained stable, driven by government infrastructure spending and private sector capital formation. Despite global uncertainties, these factors combined to support India’s strong real GDP expansion for the quarter.