Rama Krishna Sangem
India’s real gross domestic product (GDP) growth for the fourth quarter (Q4) of financial year 2024-25 (FY25) stood at 7.4 per cent, according to data released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) on May 30 Friday. For the full financial year 2024-25, real GDP growth stood at 6.5 per cent, slightly below the Reserve Bank of India’s (RBI) projection of 6.6 per cent for the year.
Q4 GDP beats RBI forecast
The central bank had forecast Q4 growth at 7.2 per cent, but the actual figure for the fourth quarter surpassed this at 7.4 per cent. For the ongoing financial year (FY26), the RBI has pegged GDP growth at 6.5 per cent.
Nominal GDP up 9.8 per cent annually
Nominal GDP, which includes inflation, increased by 9.8 per cent for the full financial year, reaching ₹330.68 trillion. In the January–March quarter alone, nominal GDP rose by 10.8 per cent year-on-year to ₹88.18 trillion.
Construction, services lead GVA FY25 growth. Gross value added (GVA) at constant prices, which excludes taxes and subsidies on products, grew by 6.4 per cent in FY25. In Q4, GVA rose by 6.8 per cent year-on-year.
Among the sectors, the construction industry led growth with a 9.4 per cent increase over the year and a striking 10.8 per cent jump in Q4. Public administration, defence, and other services grew 8.9 per cent for the year, while financial, real estate, and professional services rose by 7.2 per cent.
In a good news, agriculture sector sharply by 4.4 per cent up from 2.7 per cent last year. Similarly, the private capital expenditure too looking up, compared to the last year. All theses trends coupled with a good monsoon this year, Indian economy is poised to a good show in 2025-26 too. For people, this means, a low food inflation and decent rally for domestic investors in the stock market. With this rate of growth, India will surely overtake Germany in next two years and emerge as the world’s No 3 economy.
