Page 12 - Policy Economic Report - December 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Firms have adapted supply chains to take advantage of existing trade preferences and have built up
inventories to manage uncertainty, limiting the pass-through of higher costs to consumers. Services trade
— largely insulated from the latest increases in trade costs — has also remained robust, particularly in
business and information services.

5. Indian Economy

India’s economic growth

As per the latest data released by NSO, the real GDP of India, adjusted for inflation, is estimated to grow
by 8.2% in Q2 of FY 2025-26 against the growth rate of 5.6% during Q2 of FY 2024-25. The GDP in Q1 of
FY 2025-26 grew at 7.8% against the growth rate of 6.5% during Q1 of FY 2024-25. Nominal GDP has
witnessed a growth rate of 8.7% in Q2 of FY 2025-26.

The surge is supported by resilient domestic demand, moderating inflation, and higher labor force
participation. A revival in domestic investment and strong investor sentiment signals a stable and broad-
based economy. As reforms gather pace and consumption remains optimistic, India’s economic outlook
continues to upbeat, signaling sustained momentum and growth across sectors.

Primary sector experienced the year-on-year Real GVA growth rate of 3.1% in Q2 FY 2025-26. Similarly,
the Secondary (8.1%) and Tertiary Sector (9.2%) have boosted the Real GDP growth rate in Q2 of FY 2025-
26.

Figure 8: India’s GDP growth

Source- NSO Page | 11

November 2025