Key Highlights

• India's Q4 FY25 GDP growth accelerates to 7.4%, driven by robust construction and services sectors.
• Despite Q4 surge, FY25 annual GDP growth slows to 6.5%, marking a four-year low.

According to data released on Friday by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), India's real GDP growth in the fourth quarter (Q4) of fiscal year 2024-25 (FY25) was 7.4 percent. For the full fiscal year 2024-25, real GDP growth was 6.5%, slightly lower than the Reserve Bank of India's (RBI) projection of 6.6% for the year.

Q4 GDP exceeds RBI forecast

The central bank forecasted Q4 growth of 7.2%, but the actual figure was 7.4%. The RBI expects GDP growth of 6.5% in the current fiscal year (FY26).

Nominal GDP increased by 9.8 percent annually

For the fiscal year, nominal GDP (including inflation) increased by 9.8% to ₹330.68 trillion. In the January-March quarter, nominal GDP increased by 10.8% year-on-year to ₹88.18 trillion.

Construction and services lead GVA growth in FY25

Gross value added (GVA) at constant prices, which excludes taxes and product subsidies, increased by 6.4% in FY25. In Q4, GVA increased by 6.8 percent year on year.

Among the sectors, the construction industry led the way with a 9.4 percent increase over the year and a stunning 10.8 percent increase in Q4. Public administration, defense, and other services increased by 8.9 percent this year, while financial, real estate, and professional services increased by 7.2%.

Also Read:India Q3 GDP Boosted by Robust Rural Demand and Government Spending

The agricultural sector sees improvement in Q4

The primary sector, which includes agriculture and related activities, posted a 4.4% annual growth rate, up from 2.7% the previous year. Its Q4 performance was even better, with a 5% growth rate versus 0.8% in the same quarter last year.

On the expenditure side, private final consumption expenditure (PFCE), a key driver of demand, increased by 7.2% in FY25, up from 5.6% the previous year. Gross fixed capital formation (GFCF), which represents investment, increased 7.1% annually and 9.4% in the fourth quarter.

Quarterly GDP growth in FY 25

India's GDP growth rate for the third quarter of FY25 was 6.2%, a recovery from the previous quarter, when GDP growth fell to a seven-quarter low of 5.4% in Q2 FY25. The Q3 rebound was fueled by strong service sector performance and an increase in government capital spending. The GDP growth rate in Q1 FY25 was 6.7%.

The next GDP release, for the first quarter of FY26, is set for August 29, 2025.