India’s economy ended the fiscal year 2024-25 on a strong note, with real GDP growth accelerating to 7.4% in Q4 driven by robust performances in construction, public administration, and financial services. The GDP growth rate in Q3 of FY25 was 6.2%.
The real GDP growth for the full year stood at 6.5%, according to the Ministry of Statistics and Programme Implementation.
The Q4 GDP growth number was better than expected as most analysts had predicted sub-7% growth.
The Q4 surge was led by construction (10.8% growth), public administration & defense (8.7%), and financial services (7.8%), signaling strong infrastructure and government-led activity.
Private consumption (PFCE) rose 7.2% for the full year, indicating resilient demand, while investment (GFCF) jumped 9.4% in Q4, pointing to renewed business confidence.
Agriculture rebounded to 5.0% growth in Q4, a sharp recovery from 0.8% in the same quarter last year.
Nominal GDP in FY25 rose by 9.8% to Rs 330 lakh crore, which if converted in dollar terms comes around $3.92 trillion assuming average dollar/INR exchange rate of 84. FY25 real GDP stood at ₹187.97 lakh crore, up from ₹176.51 lakh crore in FY24.
Q4 nominal GDP growth hit 10.8%, reflecting both real expansion and inflationary pressures.
The strong Q4 performance suggests India remains one of the fastest-growing major economies, with construction and public spending driving momentum. However, sustaining private investment and rural demand will be critical for FY26 growth.