India's economic growth remained robust in fiscal year 2024-25, with the nation's Gross Domestic Product (GDP) expanding by 6.5%. The growth was propelled by a strong performance in the fourth quarter (January-March), where the GDP surged by 7.4%, exceeding expectations and solidifying India's position as one of the fastest-growing major economies in the world.
The Ministry of Statistics released the GDP growth estimates, revealing a resilient Indian economy amidst ongoing geopolitical uncertainties. While the annual growth of 6.5% marked a four-year low, the Q4 performance demonstrated significant acceleration compared to the previous three quarters. This figure aligns with the second advance estimate by the National Statistical Office (NSO) and projections made by the Reserve Bank of India (RBI) in its April Monetary Policy Committee meeting.
Various sectors contributed to this growth, with construction leading the way with a remarkable 10.8% expansion in Q4. Public Administration, Defence, and Other Services also saw robust growth at 8.7%, followed by Financial, Real Estate, and Professional Services at 7.8%. The primary sector witnessed a 4.4% growth rate for the entire fiscal year, improving to 5.0% in Q4 compared to 0.8% in the same period last year. Private Final Consumption Expenditure (PFCE) also played a key role, reporting a 7.2% growth rate during FY 2024-25, compared to 5.6% in the previous fiscal year.
The real GDP for FY 2024-25 is estimated at ₹187.97 lakh crore, a notable increase from the First Revised Estimates of ₹176.51 lakh crore for FY 2023-24. Nominal GDP is expected to reach ₹330.68 lakh crore, up from ₹301.23 lakh crore in the previous year. Real GVA is projected to reach ₹171.87 lakh crore, while nominal GVA is expected to grow to ₹300.22 lakh crore.
Several economists had anticipated the GDP figures to surpass earlier forecasts, attributing this to reduced government subsidy disbursements. Despite a downward revision in global growth forecasts and heightened geopolitical risks, the Indian economy demonstrated resilience, effectively managing changing conditions.
The GDP growth data arrives at a significant juncture, with India having recently surpassed Japan to become the fourth-largest economy globally. This milestone, confirmed by IMF data, underscores India's growing influence in the global economic landscape, now ranking behind only the United States, China, and Germany.
