NEW DELHI, May 30, 2025: The Indian economy demonstrated remarkable resilience and momentum in the final quarter of the fiscal year 2024-25, with Gross Domestic Product (GDP) surging by 7.4%, according to provisional estimates released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) today at 4 PM. This robust performance in Q4 (January-March 2025) has propelled the full fiscal year (FY25) growth to a solid 6.5%, signaling a strong finish to the year and exceeding initial subdued expectations for the quarter.
The Q4 growth figure of 7.4% is a significant acceleration from the 6.2% growth recorded in the third quarter (October-December 2024) of FY25. Today’s data release has been largely welcomed by economists and market analysts, many of whom had pegged Q4 growth slightly lower. The strong performance is primarily attributed to a stellar showing by the construction and agriculture sectors, coupled with sustained rural demand, increased government capital expenditure, and a healthy uptick in export performance. These positive India Q4 FY25 GDP results reinforce the nation’s position as one of the fastest-growing major economies globally.
FY2024-25: A Year of Consistent Growth
The full fiscal year 2024-25 closed with an overall GDP growth of 6.5%, built on consistent quarterly performances:
- Q1 (April-June 2024): 6.50%
- Q2 (July-September 2024): 5.60%
- Q3 (October-December 2024): 6.20%
- Q4 (January-March 2025): 7.40%
This annual growth aligns with the government’s target. Chief Economic Advisor (CEA) V. Anantha Nageswaran had earlier noted that a Q4 growth of 7.6% would be ideal to hit the 6.5% annual mark. The achieved 7.4% indicates that robust momentum in the final quarter, likely supported by factors including pre-election government spending and the economic fillip from events like the Prayagraj Mahakumbh, was crucial.
Sectoral Drivers and Expert Reactions
Media reports and initial expert reactions highlight the construction sector and a surprising rebound in the agriculture sector as key drivers for the strong Q4 numbers, despite some global headwinds. The services sector is also reported to have maintained a healthy growth trajectory.
“The 7.4% Q4 growth is certainly a positive surprise and reflects underlying strength in domestic demand drivers, particularly investment and government consumption,” commented a chief economist from a leading financial institution, as quoted by several media outlets. “The revival in agriculture despite some weather-related concerns earlier in the year is particularly noteworthy.”
Other analysts pointed out that while private consumption showed some improvement, its recovery needs to be more broad-based for sustained high growth. The focus now shifts to how this momentum can be maintained in FY2025-26.
India’s GDP: A Historical Snapshot (Annual Growth)
- FY21 (2020-21): -5.8% (COVID-19 pandemic impact)
- FY22 (2021-22): 9.7% (Strong post-pandemic rebound)
- FY23 (2022-23): 7.0% (Sustained growth)
- FY24 (2023-24): 8.2% (Robust expansion)
- FY25 (2024-25): 6.5% (Provisional)
Understanding GDP Briefly
Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country’s borders in a specific time frame, reflecting its economic health. It includes Real GDP (adjusted for inflation, using base year 2011-12 prices for India) and Nominal GDP (at current prices). The calculation typically follows the expenditure method: GDP = C (Private Consumption) + G (Government Spending) + I (Investment) + NX (Net Exports). For India, private consumption and investment are major drivers, while net exports often have a negative contribution due to a higher import bill.
Market Sentiments and Outlook
Indian stock markets had closed before the GDP data release (3:30 PM IST). The Nifty 50 ended around 27,750.70 (down 82.90 points), while the Bank Nifty closed positively around 55749.70 (up 203.65 points). The better-than-anticipated GDP figures are likely to be received positively by the market in the next trading session.
These India Q4 FY25 GDP results provide a reassuring picture of the country’s economic trajectory, suggesting resilience in domestic demand and a favorable outlook, though global uncertainties and the need for continued reforms remain key areas to monitor.