India’s Q2 GDP Grew 8.2% YoY, Private Consumption Share Rose To 62.5%: Finance Minister

New Delhi, Dec 8 (KNN) Highlighting the strong fundamentals of Indian economy, Finance Minister Nirmala Sitharaman on Monday said that India's GDP at constant prices grew 8.2 per cent in Q2 of 2025-26, up from 5.6 per cent in the same quarter of the previous year and higher than the 7.8 per cent recorded in Q1.

Replying to a question in Parliament, the Finance Minister said that the share of Private Final Consumption Expenditure (PFCE) in GDP also rose to 62.5 per cent in Q2, indicating improving demand conditions.

Policy Measures to Support Consumption

The Minister noted that the Government has adopted a multi-pronged approach to bolster consumption.

Measures include income tax exemption on annual incomes up to Rs 12 lakh, rationalisation of GST rates, continued reforms to enhance ease of doing business, expanded skilling and employment programmes, and sustained infrastructure investment.

Access to credit through initiatives such as MUDRA and PM SVANidhi is also expected to support household spending and small enterprise activity.

Balancing Rural and Urban Demand

To balance rural and urban consumption, the Minister highlighted parallel interventions in both segments.

Urban consumption is being supported through skilling initiatives, livelihood programmes, tax reliefs and the expansion of digital payments. 

In rural areas, schemes such as PM-KISAN, MGNREGS, PM Awas Yojana (Gramin), agricultural productivity missions and Self-Help Group-led livelihood programmes are aimed at broad-based income enhancement.

Sitharaman stated that stronger consumption demand is expected to reinforce overall economic activity by lifting household incomes, encouraging private investment and contributing to sustained growth momentum.

(KNN Bureau)