India’s economy expanded at a faster pace than anticipated last quarter, highlighting the country’s economic resilience even as steep U.S. tariffs imposed by President Donald Trump weigh on the outlook for the remainder of the year. Gross domestic product rose 8.2% in the three months to September compared with the same period a year earlier, according to data released Friday by the Statistics Ministry. The performance exceeded the 7.4% median estimate from economists surveyed by Bloomberg, and built on the 7.8% growth recorded in the April–June quarter.
The figures represent the first detailed gauge of economic momentum since Trump’s 50% tariffs were implemented in August. The levies — the highest imposed by any major economy — have rattled business sentiment, particularly among manufacturers. Several firms have reported a slowdown in orders from the United States, India’s largest export destination, raising concerns about the durability of growth in the coming quarters.
Despite the external challenges, domestic policy support is helping buffer the economy. Prime Minister Narendra Modi’s government has introduced sizable tax reductions aimed at stimulating consumer and business spending ahead of the festive shopping season. With private consumption accounting for nearly 60% of India’s GDP, economists note that boosting household demand is critical to sustaining growth amid global uncertainty.
The stronger-than-forecast numbers offer Modi’s administration a timely boost as it seeks to counteract the drag from U.S. trade measures. Still, analysts cited by Bloomberg caution that risks remain elevated, and India’s ability to maintain its growth trajectory will depend on both domestic policy momentum and the evolving trade relationship with Washington.
