{"id":160530,"date":"2025-11-30T02:09:21","date_gmt":"2025-11-30T02:09:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/160530\/"},"modified":"2025-11-30T02:09:21","modified_gmt":"2025-11-30T02:09:21","slug":"india-economy-grows-8-2-in-september-quarter-even-as-tariffs-bite","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/160530\/","title":{"rendered":"India economy grows 8.2% in September quarter even as tariffs bite"},"content":{"rendered":"

Hadynyah | E+ | Getty Images<\/p>\n

In a quarter partially affected by the 50% U.S. tariffs, the Indian economy grew faster than expected at an annual rate of 8.2% in the quarter ending in September.<\/p>\n

The growth was an acceleration from 7.8% in the previous quarter<\/a>, when a lower deflator unexpectedly boosted real growth. A deflator measures how inflation affects the value of total output.<\/p>\n

A Reuters poll of economists had pegged the July-September gross domestic product at 7.3%.<\/p>\n

India’s nominal GDP \u2014 which does not account for inflation or deflation \u2014 grew 8.7% in the September quarter compared to 8.8%<\/a> in the previous quarter.<\/p>\n

The sharp improvement in GDP growth rate was on account of a pick up in manufacturing and construction activity and domestic consumption. Financial and real estate professional services have “sustained a substantial growth rate” of 10.2% in Jul-Sep, the government said in a release<\/a>. <\/p>\n

\"Axis<\/p>\n

During the September quarter, domestic consumption was “held back” ahead of the planned cuts to the goods and services tax<\/a>,\u00a0Neelkanth Mishra, chief economist at Axis Bank, told CNBC’s “Inside India” before the release of the GDP data.<\/p>\n

The 50% tariffs on Indian goods exported to the U.S. took effect in August. To cushion the impact, New Delhi announced sweeping GST tax reductions<\/a> effective Sept. 22 to boost domestic consumption.<\/p>\n

Demand picked up sharply in October, with record sales of autos<\/a> and gold<\/a> as the GST cuts and earlier reduction of the individual income tax rate lifted disposable incomes. Even so, India’s goods trade deficit hit a new high<\/a> on weak exports and higher gold imports.<\/p>\n

The International Monetary Fund,\u00a0in a report<\/a>\u00a0on Wednesday, said India’s real GDP is projected to grow 6.6% in fiscal 2026 before moderating to 6.2% in fiscal 2027, assuming a prolonged delay in a U.S.-India trade deal.<\/p>\n

It also forecasted India’s merchandise exports to fall 5.8% in fiscal year 2026 to $416 billion, while goods imports are expected to rise 2.4% to $746 billion.<\/p>\n

“Despite external headwinds, growth is expected to remain robust, supported by favorable domestic conditions,” the IMF said in the release, with its data also suggesting that India will become a $5 trillion economy by fiscal year 2029.<\/p>\n

\u2014 CNBC’s Amitoj Singh contributed to this report.<\/p>\n","protected":false},"excerpt":{"rendered":"Hadynyah | E+ | Getty Images In a quarter partially affected by the 50% U.S. tariffs, the Indian…\n","protected":false},"author":2,"featured_media":160531,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[3739,251,2342,138,553,219,2344,1943,12074,111,139,69,584,1215],"class_list":["post-160530","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-asia-economy","tag-breaking-news","tag-breaking-news-economy","tag-business","tag-business-news","tag-economy","tag-india","tag-inflation","tag-new-delhi","tag-new-zealand","tag-newzealand","tag-nz","tag-trade","tag-world-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/160530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=160530"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/160530\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/160531"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=160530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=160530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=160530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}