India’s Q3 GDP Jumps 8.2% on Consumer Strength, Canada Returns to Growth

Overview

• India’s economy grew 8.2% year over year in July–September, beating forecasts near 7.4% and accelerating from 7.8% in the previous quarter, according to official data.
• Private consumption rose 7.9% and solid industrial activity underpinned the outperformance, while gross capital formation slowed to 7.3% from 7.8% in Q2.
• The external sector weakened, with exports down about 12% in October and shipments to the United States falling 8.6%, and the quarterly trade deficit widening to 2.6 trillion rupees from 1.7 trillion a year earlier.
• The United States imposed 50% tariffs on most Indian goods starting in August; Prime Minister Narendra Modi called the Q3 result “very encouraging,” and officials lifted 2025 growth expectations to roughly 7%, with reports of a possible U.S.–India trade agreement remaining unconfirmed.
• Canada’s GDP grew 0.6% in Q3, or 2.6% annualized, as net trade improved, and Statistics Canada cautioned that larger-than-usual revisions are likely due to incomplete cross-border trade data.