India’s GDP grows 8.2% in Q2 despite 50% Trump tariffs:What’s driving the numbers of world’s 4th-largest economy, ranked 3rd on Asia Power Index, Edelman’s Trust Barometer?

US, under President Donald Trump’s aggressive trade playbook, imposed a whopping 50% tariff on Indian goods just months ago. Exports take a hit, global jitters rise. Yet, India’s economy is not just standing tall it’s sprinting. Official data dropped on Friday shows GDP surged with a rate 8.2% in the July-September quarter (Q2 of FY 2025-26), smashing past expectations. Add to that India’s shiny 3rd spot on the Lowy Institute’s Asia Power Index, a nod to its muscle in economic, military, and diplomatic arenas across the continent. Also, the trust score puts the country at 3rd globally on Edelman’s 2025 Trust Barometer, where civilians here have rock-solid faith in government (79% trust level, up 3% from last year). How’s India writing its growth story? Here we break it down… India’s GDP growth rate second quarter stood 8.2% GDP is like the heartbeat of India’s economy, the total value of everything produced, sold, and spent in a period. The second quarter (July–September) usually shows a dip in the rate because of monsoon disruptions. Last year, it was only 5.6%. This year, it jumped to 8.2%, lifting the half-year growth average to 8%. That’s much faster than China’s 4.6% and the world average. Even Moody’s, known for being cautious, expects India to grow with an average growth rate of 7% in 2025. It is after Trump’s tariffs hit in late August, right in the middle of this quarter. A 25% ‘reciprocal’ tax, plus another 25% on items like textiles and tech making the highest burden in the world of 50%, slowed US-bound exports. Yet India replies with a strong growth rate to the US President’ comment— ‘India a dead economy’. What powered the boom? India’s rise this quarter came mostly from the domestic market, not from exports. 1. Manufacturing growth Factory output grew 9.5%, led by autos, electronics, and chemicals. The government’s Make in India push and PLI incentives attracted big players like Apple and Tesla. Even with export pressure, domestic demand remained strong. 2. Construction infrastructure surge Big expenses on roads, airports, and railways boosted jobs and incomes. The sector grew 8.8%, supported by ₹11 lakh crore infrastructure budget. Rural road projects alone provided 2 million jobs this quarter. 3. Services sector stayed strong IT, finance, tourism, and other services grew 7.9%. A young workforce and digital payments boom helped UPI processed 15 billion transactions in September. India ranks as 3rd biggest power in Asia India strengthened its position as a major Asian power, crossing a key score on the Asia Power Index. Australia’s think tank, the Lowy Institute, announced on Friday that India has now become the third-largest influential power in the Asia Power Index-2025. The ranking places America first and China second in the list. According to the report, this status has been achieved based on rapid economic growth and increasing military capability. India’s performance in Operation Sindoor also played a crucial role in boosting its defense rating. In 2024, India was in the category of a middle power with a score of 38.1. In 2025, the score increased to 40 points, after which India joined the category of a major power. America’s total score decreased by 1.2 points. Meanwhile, Edelman’s survey shows India has become the third most trusted country in the world. People are expressing more trust in the government and the system. This extends to business, to NGOs, and then to the media as well This trust among citizens helps the government push through reforms like recent GST changes, says Dr Shaweta Kohli, Professor of Economics at Central University of Jammu.