India’s economy expanded by 7.4% in the January–March 2025 quarter (Q4 FY25), according to data released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). This marks a slowdown from the 8.4% growth recorded in the same period last year but remains higher than economists’ expectations. A CNBC-TV18 poll had estimated Q4 GDP growth at 6.8%.The government has retained its full-year FY25 real GDP growth estimate at 6.5%, in line with its earlier forecast, even as economists predicted a slightly lower figure of around 6.3%.
Nominal GDP is estimated to have grown 9.8% in FY25, while real GDP saw a 6.5% rise. In Q4 alone, nominal GDP growth was pegged at 10.8%, while real GDP maintained the 7.4% pace.
Among sectors, construction continued to lead, growing 10.8% in Q4 and 9.4% for the full year. Public administration, defence and other services grew by 8.7% in Q4, while financial, real estate, and professional services expanded by 7.8%. The primary sector saw a sharp improvement, growing 5.0% in Q4 compared to just 0.8% in the same quarter a year ago. For the full year, it expanded by 4.4%, up from 2.7% in the previous fiscal.Private Final Consumption Expenditure (PFCE) rose 7.2% in FY25, an improvement over the 5.6% growth recorded last year. Gross Fixed Capital Formation (GFCF), a key measure of investment activity, grew 9.4% in Q4 and 7.1% for the year.First Published: May 30, 2025 4:27 PM IST
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