Economy: India’s GDP grew by 6.5% in FY25; 7.4% in Q4FY25
Virendra Pandit
New Delhi: India’s economy grew by 6.5 percent in 2024-25, down from 9.2 percent in the previous fiscal, the government data released on Friday said.
India’s real gross domestic product (GDP) growth for the fourth quarter (Q4) of financial year 2024-25 (FY25) stood at 7.4 percent, according to data released by the National Statistics Office (NSO), Union Ministry of Statistics and Programme Implementation (MoSPI) on Friday.
The real GDP growth for the full year that ended on March 31, 2025 was estimated at 6.5 percent.
The Reserve Bank of India (RBI) had pegged the Q4FY25 growth at 7.2 percent and the full year’s growth of FY25 at 6.6 percent.
India’s GDP growth rate for the Q3FY25 was 6.2 percent, which marked a recovery from the previous quarter when GDP growth fell to a seven-quarter low of 5.4 percent in Q2FY25. The Q3 rebound was supported by robust service sector performance and an uptick in government capital expenditure. The GDP growth in Q1FY25 was 6.7 percent.
The RBI, in its last Monetary Policy Committee (MPC) meeting, projected GDP growth for the full financial year (FY25) at 6.6 percent. For the March quarter (Q4FY25), it forecast growth at 7.2 percent, reflecting expectations of improved momentum in private consumption and sustained investment activity. Looking ahead, the RBI’s GDP growth forecast for FY26 is 6.5 percent., the media reported.
The construction sector is expected to record a growth rate of 9.4 percent in FY25, followed by an 8.9 percent in ‘Public Administration, Defence & Other Services’ sector and 7.2 percent in ‘Financial, Real Estate & Professional Services’ sector.
During Q4FY25, the construction sector witnessed 10.8 percent growth rate, followed by 8.7 percent in ‘Public Administration, Defence & Other Services’ sector and 7.8 percent in ‘Financial, Real Estate & Professional Services’ sector.
The primary sector has seen 4.4 percent growth rate as compared to 2.7 percent in the previous fiscal. During Q4FY25, this sector observed 5 percent growth rate as compared to 0.8 percent in Q4FY24.
The Private Final Consumption Expenditure (PFCE) has reported 7.2 percent growth rate during FY25 as compared to 5.6 percent in the previous financial year.
The Gross Fixed Capital Formation (GFCF) has recorded 7.1 percent growth rate during FY25 and 9.4 percent in Q425.
