India’s GDP Growth: Despite global economic uncertainties, high US tariffs and international market turmoil, the Indian economy is growing at a fast pace. Rating agency India Ratings and Research (Ind-Ra) has said in its latest estimate that India’s GDP may grow at the rate of 7.2% in the second quarter of the financial year 2025-26.

The fastest growth will be seen in the second quarter

The rating agency says India’s real gross domestic product (GDP), measured on the base year of 2011-12, will grow at the fastest pace in the last five quarters. The National Statistical Office (NSO) will release official GDP figures on November 28.

Main basis of growth – Private Consumption

Paras Jasrai, Chief Economist and Managing Director of India Ratings and Research, said that increase in private consumption is the main reason for GDP growth. “There has been improvement in the real income of both high and low income groups, which has increased demand.”

Contribution of infrastructure and service sector

According to the agency, the strong position of the infrastructure sector, increase in goods and services exports and strength of the services sector have also boosted the growth in the second quarter. Private consumption is estimated to grow by 8% in the second quarter of the financial year 2025-26. Whereas in the first quarter of last year it was 7% and in the second quarter it was 6.4%.

The agency says that the income tax cut by the government has played an important role in increasing consumption demand. However, if purchase decisions had not been postponed due to the rationalization of GST rates, there would have been an even sharper jump in consumption.

7.5% increase in investment demand

According to the statement, investment demand has also increased at the rate of 7.5% on an annual basis. Stable capital expenditure of the government is playing an important role in maintaining this growth.

Also read: Legal notice to Google, accusing it of stealing users’ data by using Gemini AI

Budget 2026: After the change in GST rates, the government has now started preparing for the country’s budget. The Finance Ministry has issued a circular regarding the preparations for the budget. It says that the ministry and its associated departments will start preparing for the budget of October 2026.

The special thing is that it is coming after 50 percent tariffs on the import of Indian goods of US President Donald Trump. Experts say that there is no scope for any reconciliation between the two countries before the upcoming budget in February next year, so the budget will be specially focused on the sectors who have suffered more than the tariff of Trump. Let us give you some more information about the preparations for the upcoming budget through this news.

When will the preparation of budget 2026 start?

The Finance Ministry will start preparing for the budget of 2026-27 from 9 October. Budget preparations are going to start amidst US India and global uncertainties arising from it.

In the next year’s budget, more attention will be paid to more and more employment opportunities along with increasing the demand. Along with this, focus will also be done on transporting the economy of the country at more than eight percent sustainable growth rate. The government estimates that during the current financial year, the country’s economic growth rate will be between 6.3 to 6.8 percent.

Some special things of circular

According to the budget circular (2026-27) of the Department of Economic Affairs, the Budget-East meetings chaired by the Secretary (Expenditure) will start from October 9, 2025. The circular states that financial advisors should ensure that the required details in VII from Appendix I are properly recorded by or before October 3, 2025.

The hard copy of the data in the specified format should be deposited for verification. The budget estimates for the financial year 2026-27 will be finalized after the completion of the budget-pre-meetings and the revised estimate (RE) meetings will continue till mid-November 2025.

Also read:

GST 2.0: The effect of tariff will be less, the economy will catch speed; India will move forward the way for development