ECONOMY
FY25 economic growth at four-year low of 6.5%; Q4 GDP expands faster at 7.4%
- IBJ Bureau
- May 31, 2025
India’s economy grew by 6.5 per cent in 2024-25, marking its slowest pace in four years, according to data released by the National Statistics Office (NSO) on Friday.
The figure is lower than the previous year’s growth and shows a cooling down in the overall economic activity. In comparison, the Indian economy had grown at a much faster pace during the pandemic recovery years.
According to the government’s statement: “Real GDP has been estimated to grow by 6.5 per cent in 2024-25. Nominal GDP has witnessed a growth rate of 9.8 per cent in 2024-25.” The government has also slightly lowered its earlier forecast for nominal GDP growth, which was 9.9 per cent.
While the full-year GDP numbers have slowed, data for the last quarter of FY25 painted a better picture. The real GDP growth for the March quarter (Q4) stood at 7.4 per cent, which is the fastest among all four quarters of the year.
Growth in the third quarter had climbed to 6.2 per cent, up from the previously estimated 5.6 per cent.
With these latest numbers, India remains among the world’s fastest-growing economies. The International Monetary Fund (IMF) also projects that India will overtake Japan in economic size by the end of the year, reaching $4.18 trillion.
“The Q4 FY25 GDP numbers are marginally higher than our expectations but broadly track the government’s earlier estimate. The GVA estimate, however, remains more tepid at 6.8 per cent. Expectedly, the high net indirect tax growth has led to the wide gap between the two,” said Upasna Bhardwaj, the chief economist of Kotak Mahindra Bank.
Report By
View Reporter News