New Delhi, Dec. 30 -- India entered a rare phase of high growth combined with low inflation in 2025, with economic indicators pointing to strengthening momentum across output, jobs, prices, and trade, according to a government assessment released on Sunday.

GDP Growth and Inflation

India's real GDP growth rose to 8.2 percent in Q2 FY26, up from 7.8 percent in Q1 and 7.4 percent in Q4 FY25, marking a six-quarter high. Strong domestic consumption drove the expansion, with gross value added growing 8.1 percent, led by industry and services.

Inflation eased sharply in FY26, creating a 'goldilocks period' of strong growth with price stability.

Headline consumer price index (CPI) fell from 4.26 percent in January to 0.25 percent in October,...