India’s economy grew at a robust 8.2 percent in the July–September quarter, the highest in the last six quarters. Last year in the same quarter the GDP was 5.6 percent and in April-June it was recorded at 7.8 percent. Economists had estimated growth at 7.3 per cent, while the RBI had pegged it at 7 per cent, but the actual figures exceeded these estimates. The reasons behind this sharp growth are relief in GST, increased demand in the market before festivals, increase in expenditure in rural areas and strength in many sectors. Finance Minister Nirmala Sitharaman had earlier said that the GST cut would leave people with additional savings of around Rs 2 lakh crore, and the second quarter results reflect the same effect. Sector wise, primary sectors like agriculture and mining grew by 3.1 percent. The agriculture sector has grown at the rate of 3.5 percent. The manufacturing sector has registered an impressive growth of 9.1 percent in this quarter, compared to just 2.2 percent last year. The service sector also performed strongly, with trade, hotels and transport seeing growth of 7.4 percent, financial and real estate 10.2 percent and public administration and defense 9.7 percent. This video will explain to you every important aspect of India’s GDP growth in detail—why the figures increased, which sectors made the biggest contribution, where the economy is likely to head next and how all this could impact the global landscape.

India’s Service Sector Growth Slows: Disappointing news has come from the service sector amidst the continuous efforts being made to speed up the country’s economy. While the recent GST reforms were expected to raise domestic demand and business activities, the growth rate of the service sector has slowed down in September.

According to the Service Survey of India Seva PMI released by HSBC, the business activity index (PMI) of the service sector declined to 60.9 in September 2025, compared to 62.9 in August. Although this level is above the neutral level of 50 points, it shows that the economy still continues to grow, but this growth is now slower than before.

Recession signs and lack of international demand

According to the survey, one of the main reasons for the slowdown of the service sector is the slow pace of new orders and business activities. Along with this, there has been a soft improvement in the international demand of Indian services.

In September, an increase in export orders was recorded, but it has been at the weakest level since March. Companies said that the availability of services at low prices in other countries has increased competition, which put pressure on India’s external sales.

The situation was a bit better on the price level front. The survey reported that inflation speed had been the slowest since March, and it was in line with the long -term average. In September, the prices of Indian services increased at a weak rate, which brought some relief to consumers.

Sleake in employment generation

Employment generation was also slow during September. Less than five percent of the companies involved in the survey reported new recruits. This means that employment growth in the service sector was limited and new job opportunities were reduced.

Composite output index declines

Composite Output Index of HSBC India – which includes both manufacturing and service display – remained at 61.0 in September, which came below 63.2 in August. This reflects the weakest rate of expansion since June. This index is prepared on the basis of share in the GDP (GDP) of the country’s manufacturing and service sectors.

Purchasing manners’ Index) staying above 50 means expanding in the economy, while the level below 50 reflects contraction. Although the growth rate of the service sector has slowed down a bit, it is still in the field of expansion – which indicates that the foundation of the country’s economy remains strong, even though there is pressure on the service sector in the short term.

Opinion of analysts

According to HSBC India Chief Economist Pranjul Bhandari, “The business activities of the service sector have slowed down in September after touching the record height in August. However, this sector may gain speed again in the coming months due to domestic demand and policy stability.”

Overall, this report states that India’s service sector is still flexible and developing, but increasing global competition and reduction in international demand are making challenges for this.

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India’s Service Sector Growth: In the month of May, there has been a tremendous rise in India’s service sector. According to the data released on June 4 by a private survey, activities in the service sector in the country have gained momentum. HSBC India Services Purchasing Manager Index has reached high three months high i.e. 58.8. Services PMI was 58.7 in April last month.

However, the performance of the opposite manufacturing sector has been weak in the opposite of the country’s service sector, the PMI of which came to the level of 57.6 in May, which is the lowest level during the last three months. It is worth mentioning that if the PMI index remains above 50, it is considered growth, while it is believed to fall under it.

Growth in service and business sector

SSBC Chief Economist Pranjul Bhandari says that activities have been maintained in the services sector due to the continuous increase in international demand. Exports have been promoted. In such a situation, due to increasing demand, companies are increasing their workforce. About 16 firms were surveyed, in which he has admitted that the staff hiring has been done. Ha

But one percent definitely said that he has trimmed jobs. In such a situation, despite the rising cost, businessmen are seen more assured about the future. Significantly, despite the challenges of Trump Tariff, the most important thing is that exports from India have reached the highest level in three years. To avoid tariffs, India is now interacting with the US on a trade deal rapidly. Apart from this, India is now preparing to become an alternative to its alternative between changes in the supply chain.

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