<h1>India's Q2 FY25-26 GDP Jumps 8.2%, Fastest Among Major Economies, Eases Rate Cut Hopes, Raises Fiscal Worries</h1> India's GDP grew 8.2% year-on-year in Q2 FY2025-26, a six-quarter high, driven by strong manufacturing (9.1%) and services (10.2%) offsetting slower agriculture (3.5%). The GST rate cut and festive demand supported industrial output and private consumption, with Real PFCE up 7.9%. H1 FY2025-26 real GDP growth reached 8%, exceeding earlier official projections and reinforcing India's status as the fastest-growing major economy. Economists indicated this performance reduces the likelihood of an imminent policy rate cut, despite low inflation, and may cause full-year growth to surpass 7%. However, lower nominal GDP growth complicates adherence to fiscal deficit and debt targets measured as GDP ratios.