India Q4 GDP FY25: Growth at 7.4%, Full-Year Forecast Retained At 6.5%

Q4 FY25 GDP: India’s economic growth remained strong in the final quarter of FY 2024-25, with GDP expanding by 7.4%, according to provisional estimates released by the National Statistical Office (NSO). For the full financial year, real GDP growth stood at 6.5%, in line with earlier government forecasts, reaffirming the country’s position as one of the fastest-growing major economies.

Robust Growth Despite Global Headwinds

The January–March (Q4) GDP figure reflects a resilient domestic economy, even as global conditions remained challenging. In nominal terms, GDP rose 10.8% in Q4, while annual nominal GDP growth was 9.8%, driven by strong performances across multiple sectors.

 

Sectoral Performance

The construction sector emerged as the standout performer, growing 10.8% in Q4 and 9.4% over the full year. Government-led services also remained buoyant, with the Public Administration, Defense & Other Services segment expanding by 8.7% in Q4 and 8.9% annually.

The financial, real estate, and professional services sector recorded 7.8% growth in Q4 and 7.2% for FY25. Notably, the Primary Sector—comprising agriculture, mining, forestry, and fishing—rebounded strongly, growing 5.0% in Q4 compared to just 0.8% in the same period last year. Its full-year growth came in at 4.4%, a significant rise from 2.7% in FY24.

Consumption and Investment on the Rise

On the demand side, Private Final Consumption Expenditure (PFCE)—a key measure of consumer spending—grew 7.2% in FY25, up from 5.6% in the previous year. Investment momentum remained firm, with Gross Fixed Capital Formation (GFCF) rising 9.4% in Q4 and 7.1% over the year.

These figures indicate a broad-based recovery in domestic demand and capital formation, helping support the overall growth trajectory.

GVA Growth Mirrors GDP Momentum

Real Gross Value Added (GVA), which excludes net taxes, grew 6.8% in Q4 and 6.4% in FY25. In nominal terms, GVA rose 9.6% in Q4 and 9.5% annually. The estimates were compiled using updated data from multiple sectors, such as industrial output, corporate earnings, GST collections, transport activity, and government finances. According to MoSPI, this release reflects improved data coverage and revision in input sources, though figures may undergo further updates in the future.

Read This Also: Bank vs NBFC Auto Loans: Which One Should You Choose?