India’s real GDP growth accelerated to a six-quarter high of 8.2% YoY in Q2-FY26, up from 7.8% in Q1, supported by a favourable base and a low deflator. Growth was led by strong private consumption, while investment moderated, and government consumption and net exports acted as drags. On the supply side, real GVA rose to an eight-quarter high of 8.1%, driven by robust manufacturing and resilient services. With economic growth averaging 8% in H1-FY26, we see an upside bias to our FY26 real growth forecast, from 6.8% to likely above 7%. However, economic momentum is expected to slow in H2 as government capex normalises, and exports likely weaken with uncertainty on trade deal with the US. While strong Q2 growth reduces the urgency of a policy rate cut in the RBI’s December meeting, benign inflation and the expected moderation in H2 economic activity keep the rate-cut option open.