India's GDP grows at 7.4% in Q4 FY25; full-year growth estimated at 6.5%

RBI had pegged the fourth quarter's GDP growth at 7.2%, and FY25 at 6.6%

India’s real gross domestic product (GDP) growth for the fourth quarter (Q4) of financial year 2024-25 (FY25) stood at 7.4 per cent, according to data released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) on Friday. For the full financial year 2024-25, real GDP growth stood at 6.5 per cent, slightly below the Reserve Bank of India’s (RBI) projection of 6.6 per cent for the year.

 

Q4 GDP beats RBI forecast

The central bank had forecast Q4 growth at 7.2 per cent, but the actual figure for the fourth quarter surpassed this at 7.4 per cent. For the ongoing financial year (FY26), the RBI has pegged GDP growth at 6.5 per cent.

 

 

Nominal GDP up 9.8 per cent annually

Nominal GDP, which includes inflation, increased by 9.8 per cent for the full financial year, reaching ₹330.68 trillion. In the January–March quarter alone, nominal GDP rose by 10.8 per cent year-on-year to ₹88.18 trillion.

 

Construction, services lead GVA FY25 growth

Gross value added (GVA) at constant prices, which excludes taxes and subsidies on products, grew by 6.4 per cent in FY25. In Q4, GVA rose by 6.8 per cent year-on-year.

 

Among the sectors, the construction industry led growth with a 9.4 per cent increase over the year and a striking 10.8 per cent jump in Q4. Public administration, defence, and other services grew 8.9 per cent for the year, while financial, real estate, and professional services rose by 7.2 per cent.

 

Agri sector sees improvement in Q4

The primary sector, comprising agriculture and related activities, posted a 4.4 per cent annual growth, a marked improvement from 2.7 per cent in the previous year. Its Q4 performance was even stronger, with a 5 per cent growth rate compared to 0.8 per cent in the same quarter last year.

 

On the expenditure side, private final consumption expenditure (PFCE), a key driver of demand, grew by 7.2 per cent in FY25, up from 5.6 per cent a year ago. Gross fixed capital formation (GFCF), representing investment, rose 7.1 per cent annually and 9.4 per cent in Q4.

 

Quarterwise GDP growth in FY25

India’s GDP growth rate for the Q3 FY25 was 6.2 per cent, which marked a recovery from the previous quarter, when GDP growth fell to a seven-quarter low of 5.4 per cent in Q2 FY25. The Q3 rebound was supported by robust service sector performance and an uptick in government capital expenditure. The GDP growth in Q1 FY25 had been 6.7 per cent.

 

The next GDP release, for the first quarter of FY26, is scheduled for August 29, 2025.