Q4 GDP: India's Economy Reclaims 'Fastest Growing' Title With 7.4% Growth In Q4; FY25 Growth At 6.5%

India Q4 GDP Data: India's Gross Domestic Product (GDP) grew at 7.4% during the March quarter to log its best-ever quarterly growth in the financial year 2024-25 (FY25). However, India's economic growth in FY25 stood at 6.5%, which was the lowest in four years. India's real GDP is estimated to grow by 6.5% in FY25, according to the Ministry of Statistics and Programme Implementation (MOSPI) data released on Friday.

India Q4 GDP Data

India's real GDP data has been estimated to grow by 6.5% in FY25, and nominal GDP has witnessed a growth rate of 9.8% in FY25. During FY25, the construction sector has been estimated to record a growth rate of 9.4% in financial year 2024-25, which was followed by an 8.9% growth rate in the Public Administration, Defence and Other Services sector. India's 'Financial, Real Estate and Professional Services' sector has grown at a rate of 7.2%.

India's GDP Strongest In March Quarter In FY 25

India's economic growth in the March quarter has been the strongest in the financial year 2024-25, with a growth rate of 7.5%. India's GDP growth rate in Q1, Q2, and Q3 quarters stood at 6.4%, 5.6% and 6.4% respectively. The boost in GDP growth rate during the quarter was led by capex-centric demand mix, construction-heavy supply response, and a tax-driven wedge between GDP and GVA, according to Arsh Mogre, Economist at PL Capital.

"India closed FY25 on a high note: real GDP in Q4 expanded 7.4 % y/y to ₹51.35 lakh crore, out-running the 6.7 % consensus and lifting full-year growth to 6.5 %-the fastest among large economies. The nominal print rose an even stronger 10.8 %, pinning the implicit deflator at roughly 3.2 %, half its pre-pandemic average and signalling that volume did the heavy lifting. Yet beneath the stellar top line, three forces shaped the quarter: a capex-centric demand mix, a construction-heavy supply response, and a tax-driven wedge between GDP and GVA," noted Mogre.

Construction Sector Tops Growth In Q4FY25

Growth in the construction sector segment remained the strongest with 10.8% growth rate. Growth in the sector was followed by by 8.7% growth rate in 'Public Administration, Defence & Other Services' sector and 7.8% growth rate in 'Financial, Real Estate & Professional Services' sector.

Primary Sector has seen 4.4% growth rate as compared to growth rate of 2.7% observed in previous financial year. During Q4, FY 2024-25, this sector has observed 5.0% growth rate as compared to 0.8% growth rate in Q4 of previous financial year.
Private Final Consumption Expenditure (PFCE) has reported 7.2% growth rate during FY 2024-25 as compared to 5.6% growth rate in the previous financial year.
Gross Fixed Capital Formation (GFCF) has recorded 7.1% growth rate during FY 2024-25 and 9.4% growth rate in Q4, FY 2024-25.

India Annual GDP Growth Rate Slowest In Four Years in FY25

India's Real GDP growth rate stood at 6.5% during FY25, which was lower than 9.2% came in FY24. India's real GDP growth rate in FY24, FY23, FY22, and FY21 stood at 9.2%, 7.6%, 9.7%, and -5.8% respectively.

Underlining India's GDP growth rate forecast in FY26, Madhavi Arora, Chief Economist, Emkay Global Financial Services, mentioned, "FY26 will be impacted by global uncertainties weighing on near term investment intentions, while easing urban incomes will weigh on private consumption. However, a part of this could be countered by continued monetary easing on both policy rates and regulatory frameworks, even as the fiscal policy will have limited growth pushing levers through conventional easing".