Can India Sustain 6.5% GDP Growth in 2024-25 with Q4 Surge to 7.4%?
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Synopsis
India's economic growth story continues to impress! With a remarkable 7.4% GDP surge in Q4 2024-25, the nation is set to achieve a 6.5% growth rate for the entire fiscal year, driven by booming agriculture and construction sectors. Discover the factors behind this remarkable performance.
Key Takeaways
- India's GDP growth reached 7.4% in Q4 2024-25.
- Full-year growth rate stands at 6.5%.
- Agriculture sector growth improved to 4.6%.
- Construction sector achieved 10.8% growth in Q4.
- Private consumption rose by 7.2% in FY 2024-25.
New Delhi, May 30 (NationPress) India's GDP growth witnessed a remarkable increase to 7.4% in the fourth quarter of 2024-25. Consequently, the overall growth rate for the entire fiscal year stands at 6.5%, driven by exceptional performances in the agriculture, construction, and services sectors, according to official statistics released on Friday.
The agriculture sector saw a growth rate of 4.6% during 2024-25, a significant rise from 2.7% in 2023-24, when erratic monsoon conditions adversely affected crop yields. In Q4 of FY 2024-25, agricultural growth surged to 5%, compared to just 0.8% in the same quarter of the previous year, as per data compiled by the Ministry of Statistics.
Moreover, the construction sector achieved an impressive growth rate of 9.4% for FY 2024-25, while the 'Public Administration, Defence & Other Services' sector experienced an 8.9% growth rate, and the 'Financial, Real Estate & Professional Services' sector reported a 7.2% growth for the fiscal year.
In Q4 of FY 2024-25, the construction sector reached a double-digit growth of 10.8%, followed closely by an 8.7% growth in the 'Public Administration, Defence & Other Services' sector. The 'Financial, Real Estate & Professional Services' sector recorded a growth of 7.8% in the fourth quarter.
Reflecting strong economic demand, private final consumption expenditure rose by 7.2% in FY 2024-25, up from 5.6% in the previous year, largely driven by increased rural demand for goods and services due to higher agricultural incomes.
In addition to the agriculture sector's robust performance, substantial government investments in major infrastructure projects including highways, railways, ports, and airports have significantly contributed to the growth rate, positioning India as the fastest growing economy amidst a global slowdown.
The International Monetary Fund (IMF) has projected that India will be the only economy to achieve over 6% growth in 2025-26, as US tariff issues are likely to disrupt global trade and hinder worldwide economic growth.
Point of View
It is imperative to highlight the robust economic indicators that showcase India's resilience. The remarkable growth rates in agriculture and construction sectors amidst global economic challenges reflect the government's strategic investments and the nation's potential for sustained growth. We must continue to support initiatives that drive economic development across all sectors.
NationPress
20/07/2025
Frequently Asked Questions
What is India's GDP growth rate for 2024-25?
India's GDP growth rate for the financial year 2024-25 is 6.5%.
What contributed to the GDP growth in Q4?
The GDP growth in Q4 was mainly driven by strong performances in the agriculture and construction sectors.
How did private consumption fare in FY 2024-25?
Private final consumption expenditure grew by 7.2% in FY 2024-25, indicating robust economic demand.
What is the IMF's forecast for India's economy?
The IMF forecasts India to achieve over 6% growth in 2025-26, making it a standout economy amidst global challenges.
How did the agriculture sector perform in FY 2024-25?
The agriculture sector recorded a growth rate of 4.6% in FY 2024-25, rebounding from 2.7% in the previous year.
