India’s real GDP grew by 7.4% in the fourth quarter (Q4) of FY25, according to data released Friday by the National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI). For the full financial year ending March 31, 2025, GDP growth is estimated at 6.5%.
This Q4 performance exceeded the Reserve Bank of India’s (RBI) forecast of 7.2%, driven by strong growth in the services sector and a continued rise in capital expenditure. The full-year growth slightly missed the RBI's estimate of 6.6%.
Quarter-wise, GDP growth in Q3 FY25 stood at 6.2%, up from a seven-quarter low of 5.4% in Q2. The rebound in Q3 was also supported by increased government spending and service sector momentum. In Q1 FY25, GDP growth was recorded at 6.7%.
Looking ahead, the RBI projects GDP growth for FY26 at 6.5%, indicating expectations of stable investment and gradual recovery in private consumption.