The Indian economy achieved 6.5 % growth in the real GDP for the fiscal year 2024-25, according to temporary estimates issued by the Ministry of Statistics and the implementation of the program (MOSPI). The quarter of January (Q4) exceeded the annual performance with a strong increase of 7.4 %, indicating the continuous recovery momentum.
While GDP growth in India accelerated to 7.4 % in the last quarter of 2024-25, the total number of fiscal year amounting to 6.5 % minimum level in 4 years. In 2023-24, the GDP of India grew 9.2 percent impressive, and the main economy remains the fastest growing. According to official data, the economy grew by 8.7 percent and 7.2 percent, respectively, in 2021-22 and 2022-23.
The nominal GDP increased by 9.8 % from the previous year, reaching 330.68 rupees, while the real GDP at fixed prices touched 187.97 rupees. The fourth quarter alone witnessed the nominal GDP 10.8 % to 88.18 rupees.
The data, issued by the National Statistical Office, highlights the main drivers behind this expansion. The construction sector provides an annual growth of 9.4 %, followed by the public administration, defense and other services by 8.9 %, and financial, real estate and professional services by 7.2 %. For the fourth quarter, the construction accelerated to 10.8 %.
Private final consumption expenses, a measure of local demand, have grown by 7.2 % for this year. The formation of the total fixed capital reflects flexibility, as it expands by 7.1 % annually and 9.4 % in the fourth quarter.
The basic sector, which includes agriculture, forests, and mining, recorded a growth of 4.4 % compared to 2.7 % last year. Q4 witnessed a sharp increase to 5 %, from only 0.8 % in the same quarter of last year.
The real total value (GVA) reached 171.87 rupees, indicating 6.4 % growth on an annual basis. The nominal GVA reached $ 300.22 per creek, which represents an increase of 9.5 %.
Estimates are collected using a set of indicators, including the industrial production index, financial performance of listed companies, crops and livestock, and tax groups. Officials indicated that improving data coverage and input reviews may lead to future adjustments.
The Indian Reserve Bank (RBI), in its last meeting in monetary policy, expected the gross domestic product for the full fiscal year (fiscal year 25) by 6.6 percent. For March quarter (Q4fy25), the central bank expects 7.2 percent growth.
The gross domestic product data comes at a time when the government of Nardra Modi was talking that India has become the fourth largest economy this year. According to the International Monetary Fund estimates, India will overcome Japan by the end of 2025-26 to demand the fourth-economy sign after the United States, China and Germany.
The next GDP update is scheduled for the quarter of April to June of the fiscal year 2025-26, on August 29.
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