Global shocks and trade tensions stalled growth early in FY25—but by Q4, India surged to a stunning 7.4% GDP growth. Full-year growth hit 6.5%.
FY25 GDP Highlights
Annual GDP Growth: 6.5%
• Q4 GDP Growth: 7.4%
• Construction Q4: 10.8%
• Agriculture Q4: 5%
• Financial/Real Estate Q4: 7.2%
India remains the world’s fastest-growing major economy.
Construction Leads the Comeback
Driven by public infrastructure projects, construction grew 9.4% annually—becoming the top growth engine in FY25.
Government Spending Boosted Stability
Public administration & defense grew 8.9%, acting as a shock absorber amid global volatility.
Rural Revival Fueled by Monsoon
A strong monsoon and rising rural demand revived agriculture, which grew 5% in Q4 after a weak start.
Consumption & Investment: Heartbeat of Growth
Private consumption rose 7.2% while investment jumped 7.1%—a clear sign of growing confidence among Indians.
Is the Growth Sustainable?
Experts caution that heavy reliance on government spending and modest manufacturing growth (4.8%) may limit long-term momentum.
Inflation Drops, RBI May Cut Rates
Retail inflation fell to 3.16% in April 2025. After a 25 bps repo rate cut in February, RBI may cut rates again to further support growth.