The Indian economy grew 7.8% in the second quarter of 2025, surpassing the central bank's expectations, which had projected growth of 7%. This result was achieved despite international difficulties caused by the crisis in the Strait of Hormuz, which would normally strongly affect India due to its dependence on energy imports from the region. Prime Minister Narendra Modi celebrated the result, describing it as a "Herculean feat" and stating that "the defeatists have been defeated and India has flourished."
The growth represents a slight slowdown compared to the 8.6% recorded in the first quarter, a figure that was subsequently revised upward. Nevertheless, it exceeds the 6.9% achieved in the same period of the previous year. The performance was mainly due to robust domestic consumption, which showed greater resilience than expected to the price increases caused by the energy crisis.
Public spending, investment, and the external component also contributed positively. Tertiary sectors such as financial, real estate, and technology registered double-digit growth, while industry advanced 9.2%, accelerating compared to 8.3% in the same period last year. Conversely, the delay in monsoons affected the agricultural sector, which slowed from 4.4% to 3.6%, and mining contracted 2.4% after growth of 12.4% in the previous year.
