New Delhi, NFAPost: India’s real gross domestic product (GDP) growth for the fourth quarter (Q4) of financial year 2024-25 (FY25) stood at 7.4%, according to data released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) on Friday. For the full financial year 2024-25, real GDP growth stood at 6.5%, slightly below the Reserve Bank of India’s (RBI) projection of 6.6% for the year.
The central bank had forecast Q4 growth at 7.2%, but the actual figure for the fourth quarter surpassed this at 7.4%. For the ongoing financial year (FY26), the RBI has pegged GDP growth at 6.5%.
Nominal GDP, which includes inflation, increased by 9.8% for the full financial year, reaching Rs 330.68 trillion. In the January–March quarter alone, nominal GDP rose by 10.8% year-on-year to Rs 88.18 trillion.
Gross value added (GVA) at constant prices, which excludes taxes and subsidies on products, grew by 6.4% in FY25. In Q4, GVA rose by 6.8% year-on-year.
- Real GDP has been estimated to grow by 6.5% in FY 2024-25. Nominal GDP has witnessed a growth rate of 9.8% in FY 2024-25.
- In Q4 of FY 2024-25, Real GDP and Nominal GDP has been estimated to grow by 7.4% and 10.8% respectively.
- ‘Construction’ sector is estimated to record a growth rate of 9.4% in FY 2024-25, followed by 8.9% growth rate in ‘Public Administration, Defence & Other Services’ sector and 7.2% growth rate in ‘Financial, Real Estate & Professional Services’ sector.
- During Q4 of FY 2024-25, ‘Construction’ sector has witnessed 10.8% growth rate, followed by 8.7% growth rate in ‘Public Administration, Defence & Other Services’ sector and 7.8% growth rate in ‘Financial, Real Estate & Professional Services’ sector.
- Primary Sector has seen 4.4% growth rate as compared to growth rate of 2.7% observed in previous financial year. During Q4, FY 2024-25, this sector has observed 5.0% growth rate as compared to 0.8% growth rate in Q4 of previous financial year.
- Private Final Consumption Expenditure (PFCE) has reported 7.2% growth rate during FY 2024-25 as compared to 5.6% growth rate in the previous financial year.
- Gross Fixed Capital Formation (GFCF) has recorded 7.1% growth rate during FY 2024-25 and 9.4% growth rate in Q4, FY 2024-25.
Among the sectors, the construction industry led growth with a 9.4% increase over the year and a striking 10.8% jump in Q4. Public administration, defence, and other services grew 8.9% for the year, while financial, real estate, and professional services rose by 7.2%.
The primary sector, comprising agriculture and related activities, posted a 4.4% annual growth, a marked improvement from 2.7% in the previous year. Its Q4 performance was even stronger, with a 5% growth rate compared to 0.8% in the same quarter last year.
On the expenditure side, private final consumption expenditure (PFCE), a key driver of demand, grew by 7.2% in FY25, up from 5.6% a year ago. Gross fixed capital formation (GFCF), representing investment, rose 7.1% annually and 9.4% in Q4.
India’s GDP growth rate for the Q3 FY25 was 6.2%, which marked 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 supported by robust service sector performance and an uptick in government capital expenditure. The GDP growth in Q1 FY25 had been 6.7%.
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