How should we interpret India's 13.5% year-on-year GDP growth in Q2—ranking first among G20 countries? What factors account for this top growth rate?

India's Central Statistics Office announced on August 31 that the country's economic output for April–June stood at approximately ₹36.85 trillion, representing a 13.5% year-on-year increase. Although this figure fell slightly short of market expectations, achieving double-digit growth remains highly impressive. Last year’s second quarter was severely impacted by India’s second wave of the pandemic, resulting in an exceptionally low base. This year, as pandemic-related disruptions receded, the services sector rebounded rapidly—contributing significantly to overall growth. Fastest Growth Among G20 Nations India’s 13.5% GDP growth in Q2 was the highest among all G20 countries this quarter. Saudi Arabia ranked second, with its GDP expanding 11.8% year-on-year—boosted by high oil prices—but still trailing India slightly. India Ratings and Research had forecast Q2 growth at 13.3%, the closest prediction to the actual figure. Its Chief Economist, Devendra Kumar Pant, noted that the double-digit growth was primarily attributable to base effects—the year-ago data being unusually low.

India’s GDP grew 13.5% year-on-year in Q2 2022. How long can India sustain such high economic growth?

What would India’s GDP growth be in Q2? Many economists had previously projected growth exceeding 16%; the official answer is now in. India’s Central Statistics Office announced on August 31 that the country’s economic output for April–June stood at approximately ₹36.85 trillion, representing a 13.5% year-on-year increase. Although this figure fell slightly short of market expectations, achieving double-digit growth remains highly impressive. Last year’s second quarter was severely impacted by India’s second wave of the pandemic, resulting in an exceptionally low base. This year, as pandemic-related disruptions receded, the services sector rebounded rapidly—contributing significantly to overall growth. However, preliminary data for July already shows signs of a slowdown. Meanwhile, persistently high inflation is dampening consumer spending and restraining further economic recovery. Liu Zongyi, Secretary-General of the China–South Asia Studies Center at the Shanghai Institutes for International Studies, told Yicai Global that uncontrolled inflation has long been a structural challenge for India’s economy—especially pronounced during periods of rapid growth. Inflation surged markedly in the first half of the year, prompting the Indian government to intensify policy interventions. Fastest Growth Among G20 Nations India’s 13.5% GDP growth in Q2 was the highest among all G20 countries this quarter. Saudi Arabia ranked second, with its GDP expanding 11.8% year-on-year—boosted by high oil prices—but still trailing India slightly. India Ratings and Research had forecast Q2 growth at 13.3%, the closest prediction to the actual figure. Its Chief Economist, Devendra Kumar Pant, noted that the double-digit growth was primarily attributable to base effects—the year-ago data being unusually low. From April to June 2021, India suffered severe disruption from the Delta-variant-driven second wave of the pandemic, peaking in May and only easing by late June—seriously affecting key sectors including manufacturing and services. Aditi Nayar, Chief Economist at ICRA (India’s investment and credit rating agency), believes domestic consumer demand for services and the recovery of export-oriented industries drove relatively modest industrial growth. Since late last year, India has largely lifted pandemic-related restrictions, enabling the swift revival of the services sector. Data show that India’s services sector grew 25.7% year-on-year from April to June. Radhika Rao, Senior Economist at DBS Bank, stated that the services sector contributed over two-thirds of GDP growth during April–June.

Dabur India expects double-digit Q2 consolidated revenue growth

1 day ago

Dabur India forecasts double-digit consolidated revenue growth for the second quarter of fiscal 2027, indicating strong performance in its consumer goods segment.

reuters

2026-10-06

Dabur India expects double-digit Q2 consolidated revenue growth

Dabur India expects double-digit Q2 consolidated revenue growth

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