India's Q4FY25 GDP Growth Surges to 7.4%: A Robust Economic Turnaround
India's GDP growth in the fourth quarter of FY25 reached a 4-quarter high of 7.4%, surpassing expectations and outpacing the previous quarter's 6.4% growth. Key sectors like construction, public administration, and finance drove this robust economic performance.
Gdp GrowthIndian EconomyConstructionAgriculturePrivate ConsumptionReal EstateMay 31, 2025
The GDP rate, however, remains below the 8.4% recorded in the same period last year. Nominal GDP increased by 10.8% year-on-year, indicating a steady economic expansion. According to provisional estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on May 30, India’s economy is projected to grow at 6.5% in real terms in the financial year 2024-25, with nominal GDP expected to expand by 9.8%.
Construction was a major driver of growth, with an annual rise of 9.4%. This sector saw a significant surge of 10.8% in Q4 alone, highlighting continued momentum in infrastructure and housing activity. Public administration, defense, and other services also contributed significantly, growing by 8.9%, while financial, real estate, and professional services saw a 7.2% increase.
Agriculture and allied activities witnessed a healthy turnaround, growing by 4.4% in FY 2024-25 compared to 2.7% in the previous year. In Q4, agriculture growth reached 5.0%, a substantial improvement from just 0.8% in the same period last year. This growth is a positive indicator of the sector’s resilience and the effectiveness of government policies.
Private consumption and investments also showed strength. Private Final Consumption Expenditure (PFCE) grew by 7.2% during the fiscal year, up from 5.6% in FY 2023-24. Gross Fixed Capital Formation (GFCF), a key indicator of investment, increased by 7.1% annually and a robust 9.4% in Q4. These figures suggest a growing confidence in the economy and a positive outlook for future investments.
Real Gross Value Added (GVA) is estimated at Rs 171.87 lakh crore in FY 2024-25, marking a 6.4% increase from the revised estimate of Rs 161.51 lakh crore for FY 2023-24. Nominal GVA is expected to reach Rs 300.22 lakh crore, up 9.5% from Rs 274.13 lakh crore last year. These figures underscore the broad-based nature of the economic recovery.
Sakshi Gupta, an economist at HDFC Bank, noted, “A higher-than-expected growth indicates that the economy has recovered from the slowdown seen in the middle of last year. Given global headwinds, the central bank is expected to remain growth supportive and cut rates by a quarter-point in its next meeting.” This sentiment reflects the positive outlook for the Indian economy amidst global economic challenges.
The Q4 GDP and GVA figures show strong year-on-year gains. Real GDP or GDP at constant prices in Q4 of FY 2024-25 is estimated at Rs 51.35 lakh crore, up from Rs 47.82 lakh crore in Q4 of FY 2023-24, registering a growth rate of 7.4%. Nominal GDP or GDP at current prices during the same quarter is estimated at Rs 88.18 lakh crore, compared to Rs 79.61 lakh crore in the corresponding period last year, showing a growth rate of 10.8%.
Similarly, real Gross Value Added (GVA) in Q4 of FY 2024-25 is estimated at Rs 45.76 lakh crore, against Rs 42.86 lakh crore in Q4 of FY 2023-24, recording a growth rate of 6.8%. Nominal GVA for the quarter stood at Rs 79.46 lakh crore, up from Rs 72.51 lakh crore last year, reflecting a growth of 9.6%.
Frequently Asked Questions
What was India's Q4FY25 GDP growth rate?
India's Q4FY25 GDP growth rate was 7.4%, which is a 4-quarter high and surpasses the previous quarter's 6.4% growth.
Which sector showed the highest growth in Q4FY25?
The construction sector showed the highest growth in Q4FY25, with an annual rise of 9.4% and a significant surge of 10.8% in Q4 alone.
How did agriculture perform in Q4FY25?
Agriculture and allied activities grew by 4.4% in FY 2024-25, with a Q4 growth rate of 5.0%, a substantial improvement from 0.8% in the same period last year.
What is the projected GDP growth for FY 2024-25?
India’s economy is projected to grow at 6.5% in real terms in the financial year 2024-25, with nominal GDP expected to expand by 9.8%.
What factors contributed to the strong GDP growth in Q4FY25?
Key factors contributing to the strong GDP growth in Q4FY25 include robust performance in construction, public administration, finance, and a significant increase in private consumption and investments.
Related News Articles
Mumbai Crime Branch Cracks Down on Chhota Rajan’s Extortion Syndicate
The Mumbai Crime Branch has made significant progress in dismantling a notorious extortion racket linked to the Chhota Rajan gang. Five members were arrested for attempting to extort a local real estate developer who had already paid a staggering Rs 55 la
Mid-sized Developers Thrive in India's Reviving Real Estate Market
The Indian real estate sector is witnessing a significant upturn, and mid-sized developers are seizing the opportunity. These firms are focusing on niche developments and innovative strategies to carve out a strong market presence.
Rise in Real Estate Land Deals in Major Indian Cities
The Indian real estate sector has witnessed a surge in land deals, particularly in major cities like Delhi-NCR, Bengaluru, and Mumbai. These deals have accounted for a significant 2,000 acres of land in recent times.
Tesla Selects Showroom Locations in Delhi and Mumbai, Preparing for India Entry
Tesla, the leading electric vehicle (EV) manufacturer, has reportedly selected showroom locations in Delhi and Mumbai, indicating a significant step towards its entry into the Indian market. The company has chosen strategic locations in these cities to es
Soaring Real Estate Prices Force Zara to Close Flagship Mumbai Store
Global fashion giant Zara has shut down its flagship store in Mumbai's Hutatma Chowk due to unsustainable high rental costs, highlighting the growing challenge of India's overpriced real estate market.
Pune Leads India with Impressive Real Estate Sales in 2024
Pune emerges as the top performer in the CREDAI-CRE Matrix Report, selling nearly 90,000 housing units in 2024, generating a total sales value of Rs 65,000 crores.