India GDP growth at one-year high of 7.4% in Q4, FY25 expansion at 6.5%

India GDP Data News: India's GDP growth stood at 7.4 per cent in the January-March period, according to official data released on Friday. That marked the fastest rate of expansion in the economy since the March quarter last year—a one-year high. The quarterly GDP reading was better than economists' expectations. Acording to a poll of economists by Zee Business, the country's GDP growth was forecast to be at 6.7 per cent.

Official data shows that GDP growth improved to a one-year high of 7.4 per cent in Q4 FY25.  

What Finance Minister said about latest GDP data 

Finance Minister Nirmala Sitharaman said that all sectors of the economy are growing rapidly.

India's digital public infrastructure is being discussed across the globe, she said.   

The Finance Minister also highlighted that India has maintained its positions as the fastest growing economy for the fourth year in a row thanks to the work of small, medium, and large industries. "Agriculture has also sustained us even during COVID and subsequently," she said.

Here are 10 things to know about the latest GDP numbers:    

Q4 FY25 GDP Data | What drove economic growth in January-March 2025?

• Activity in pockets like construction and manufacturing contributed majorly to the overall growth rate, official data showed.
• In gross-value added (GVA) terms, the country's economy expanded 6.8 per cent in Q4, 30 basis points faster than the rate of 6.5 per cent recorded in the October-December period. Many economists view GVA—calculated without volatile metrics such as indirect taxes and subsidies—as a more accurate reading of underlying economic activity. 
• For the financial year 2024-25, the GDP growth came in at 6.5 per cent, with gross-value added (GVA) growth at 6.4 per cent as against 8.6 per cent the previous year. 
• The GDP rate is holding up in a growth-scarce environment, said Chief Economic Advisor V Anantha Nageswaran.

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Q4 GDP Data | Sectoral data

• Here's how various sectors fared in the latest quarterly data set:
  • Pharma: 5.4 per cent vs 0.9 per cent a year ago
  • Mining: 2.5 per cent vs 0.8 per cent a year ago
  • Manufacturing: 4.8 per cent vs 11.3 per cent a year ago
  • Construction: 10.8 per cent vs 8.7 per cent a year ago
  • Services: 7.3 per cent vs 7.8 per cent a year ago
  • Industrial: 6.5 per cent vs 9.5 per cent a year ago
  • Trade, hotels, transport and telecom: 6.0 per cent
  • Finance, real estate: 7.8 per cent 

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• Here's what consumption readings looked like:  
  • Private consumption: 6.0 per cent vs 6.2 per cent a year ago 
  • Gross fixed capital formation: 9.4 per cent vs 6.0 per cent a year ago
  • Government consumption: -1.8 per cent vs 6.6 per cent a year ago​

India holds fastest-growing major economy title 

• The overall GDP expansion rate cemented India's position as the fastest growing major economy, following the expansion of 6.2 per cent in October-December, faster than China's GDP growth rates of 5.4 per cent each for both quarters. 

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With GDP growth data now out of the way, all eyes on RBI policy review next week  

• The latest GDP reading comes days ahead of a scheduled bi-monthly review by the RBI Governor-led Monetary Policy Committee (MPC). 
• For the current financial year, the RBI has forecast GDP growth of 6.5 per cent.
• At this rate, India will continue to hold the title of the fastest growing major economy, possibly matching Japan's size this year, at $4.18 trillion, multilateral lender IMF's projections show.

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