India's GDP Grows 6.5% In FY25, Q4 Expands By 7.4%: Data

In the previous fiscal, 2023-24, India recorded an impressive growth of 9.2 per cent, reinforcing its position as the world’s fastest-growing major economy

A Finance Ministry report released in March 2025 noted that recent growth was underpinned by resilient performance in agriculture and services

Source : ABPLIVE AI

The Indian economy expanded by 6.5 per cent in real terms during the financial year 2024-25, in line with projections from both government agencies and the Reserve Bank of India (RBI), according to official data released on Friday by the Ministry of Statistics and Programme Implementation (MoSPI).

This figure, reaffirmed by the National Statistical Office's (NSO) second advance estimates, matches earlier forecasts by the RBI and the Ministry of Finance, which had anticipated 6.5 per cent growth for the fiscal year despite prevailing global economic challenges.

In the previous fiscal, 2023-24, India recorded an impressive growth of 9.2 per cent, reinforcing its position as the world’s fastest-growing major economy. The preceding years also saw robust expansion, with GDP growing by 8.7 per cent in 2021-22 and 7.2 per cent in 2022-23.

The fourth quarter of FY25 (January–March 2025) saw the economy grow at a solid pace of 7.4 per cent, building on quarterly performances of 6.7 per cent in April–June, 5.6 per cent in July–September, and 6.2 per cent in October–December.

A Finance Ministry report released in March 2025 noted that recent growth was underpinned by resilient performance in agriculture and services, as well as rising private consumption and stable exports in core merchandise and services.

Fastest-Growing Economy

Speaking at the Confederation of Indian Industry’s (CII) annual conference, Commerce and Industry Minister Piyush Goyal predicted that India would continue to be the fastest-growing large economy over the next three decades. He emphasized that the country has maintained a consistent growth range of 6–7 per cent and aspires to push this to 8 per cent in constant price terms, even in the face of global economic uncertainties.

Earlier this year, the World Bank suggested that India must sustain an average growth rate of 7.8 per cent over the next 22 years to realize its ambition of becoming a developed economy by 2047. The Economic Survey 2024-25 echoed this sentiment, stating that achieving the 'Viksit Bharat' vision would require at least a decade of 8 per cent average annual growth, supported by sweeping reforms and effective implementation.

India’s economic transformation over the past decade has been notable. From being ranked 11th globally in terms of GDP in 2013-14, it is now positioned to become the fourth-largest economy. However, despite these advancements, India continues to grapple with low per capita income levels.

A decade ago, India was counted among the so-called "Fragile Five" economies—an informal grouping coined by Morgan Stanley that included Brazil, Indonesia, South Africa, Turkey, and India—due to perceived economic vulnerabilities. Today, the narrative has shifted, with India emerging as one of the most dynamic and resilient economies among major global players.