India’s economy has recorded a 6.5% real GDP growth rate in the financial year 2024-25, with an even stronger expansion of 7.4% in Q4 (January-March), according to provisional estimates released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) on 30 May 2025. The report also highlighted robust performance across key sectors, reinforcing India’s position as one of the fastest-growing major economies.
The nominal GDP, which includes inflationary effects, grew by 9.8% in FY 2024-25, reaching Rs 330.68 trillion ($3.97 trillion). During Q4, nominal GDP increased by 10.8%, touching Rs 88.18 trillion ($1.06 trillion).
The construction sector emerged as a standout performer, recording 9.4% growth for the year, followed by 8.9% growth in public administration, defense & other services, and 7.2% growth in financial, real estate & professional services. In Q4 alone, the construction sector surged by 10.8%, while financial services grew by 7.8% and public administration saw an 8.7% expansion.
The primary sector, which includes agriculture, forestry, and mining, registered 4.4% growth, significantly up from the 2.7% growth seen in FY 2023-24. Q4 figures showed a robust 5.0% increase, contrasting with 0.8% growth in the same quarter of the previous year, indicating renewed momentum in India’s rural economy.
Private Final Consumption Expenditure (PFCE) rose by 7.2% annually, reflecting strong consumer demand compared to the 5.6% growth in the previous fiscal year. Meanwhile, Gross Fixed Capital Formation (GFCF)—a key indicator of investment activity—grew by 7.1% annually, accelerating to 9.4% in Q4 as businesses ramped up capital spending.
Real GVA (Gross Value Added), which excludes taxes and subsidies, climbed 6.4% annually, reaching Rs 171.87 trillion ($2.07 trillion), while nominal GVA increased 9.5%, hitting Rs 300.22 trillion ($3.61 trillion).
The data suggests India’s economy has maintained resilience amid global uncertainties, supported by strong domestic demand, steady investment growth, and a robust expansion in key industries. MoSPI officials credited government-led infrastructure initiatives, favorable monetary policies, and improving business sentiment for driving growth across various sectors.
Looking ahead, economists anticipate continued momentum, with potential fiscal policy adjustments and evolving geopolitical trends shaping India’s economic trajectory into FY 2025-26.
