India’s economy ended FY25 on a strong note, with GDP growth outpacing expectations in the January–March quarter. According to the National Statistics Office (NSO), Q4 GDP clocked 7.4% growth, higher than the Reserve Bank of India’s (RBI) forecast of 7.2%.
For the full fiscal year 2024-25, GDP expanded 6.5%, just shy of RBI’s earlier estimate of 6.6%.
Key Highlights: At a Glance
Q4 GDP Performance:
- Growth at 7.4% in Jan-Mar 2025, higher than RBI’s 7.2% estimate
- Strong recovery from Q2’s 5.4% low point
Full-Year Growth:
- 6.5% real GDP growth in FY25 — narrowly missing the RBI’s 6.6% projection
Nominal GDP Expansion:
- Up 9.8% YoY to ₹330.68 trillion in FY25
Top Performing Sectors:
- Construction: Sector leader — up 9.4% in FY25, 10.8% in Q4
- Public Administration, Defence & Other Services: +8.9% YoY
- Financial, Real Estate & Professional Services: +7.2% YoY
Agriculture Rebounds:
- 4.4% growth in FY25, improving from 2.7% last year
- Q4 growth at 5%, a significant rise from 0.8% in Q4 FY24
Healthy Investment & Consumption::
- Private Final Consumption (PFCE): +7.2% — indicating strong domestic demand
- Q4 growth at 5%, a significant rise from +7.1% annually, 9.4% in Q4 Q4 — reflecting robust investment activity
Quarter-wise GDP Trend (FY25)
Quarter
GDP Growth (%)
Q1 FY25
6.70%
Q2 FY25
5.4% (7-quarter low)
Q3 FY25
6.2% (Rebound begins)
Q4 FY25
7.4% (Strong finish to the fiscal year)
Looking Ahead:
India’s Q1 FY26 GDP figures will be announced on August 29, 2025 — a key indicator of whether this growth momentum will continue into the new fiscal cycle.