New Delhi : India’s economy posted an impressive surge in the January–March quarter of FY25, with GDP growth accelerating to 7.4%, significantly surpassing market expectations of 6.85%. This robust performance comes on the heels of a 6.2% growth in the previous quarter (Q3 FY25), indicating strong momentum in domestic demand, capital investment, and agricultural output.
Full-Year FY25 Growth Beats Estimates
For the entire fiscal year 2024–25, India recorded a real GDP growth rate of 6.5%, outpacing ICRA and other agency forecasts pegged at 6.3%. In nominal terms, GDP rose by 9.8% for the year, reaching ₹330.68 lakh crore, compared to ₹301.23 lakh crore in FY24.
| Sector | FY25 Growth | Q4 FY25 Growth |
|---|---|---|
| Real GDP | 6.5% | 7.4% |
| Nominal GDP | 9.8% | 10.8% |
| Construction | 9.4% | 10.8% |
| Public Admin, Defence & Other Services | 8.9% | 8.7% |
| Financial, Real Estate & Prof. Services | 7.2% | 7.8% |
| Primary Sector (Agriculture, etc.) | 4.4% | 5.0% |
| Private Final Consumption Expenditure | 7.2% | — |
| Gross Fixed Capital Formation (GFCF) | 7.1% | 9.4% |
Additionally, Q3 FY25 GDP growth has been revised upward from 6.2% to 6.4%, signaling a stronger economic footing than previously recorded.
Eyes on RBI’s June 6 MPC Meeting
With economic indicators showing resilience, all eyes are now on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting on June 6, where key decisions regarding interest rates will be made. The upbeat GDP numbers are expected to inject positive sentiment into financial markets and bolster investor confidence.
India Becomes the World’s Fourth-Largest Economy
This strong economic performance coincides with India officially overtaking Japan to become the world’s fourth-largest economy, as confirmed by the International Monetary Fund (IMF). NITI Aayog CEO B.V.R. Subrahmanyam reaffirmed this achievement at a recent Governing Council meeting, calling it a significant milestone in India’s economic journey.
Outlook for FY26 Remains Positive
According to Japanese brokerage Nomura, India’s GDP growth in Q1 FY26 could reach 6.7%, supported by strong agricultural output and expansion in the services sector. Similarly, SBI projects GDP growth for Q4 FY25 to lie between 6.4% and 6.5%, citing India’s economic resilience amid global uncertainties. A normal monsoon, as currently forecast, is expected to further strengthen both demand and investment in the coming months.
As India maintains its upward economic trajectory, these latest GDP figures underscore the country’s growing clout on the global economic stage — with promising signals for the future.
