India’s January–March GDP Growth Beats Estimates At 7.4%, 2024-25 At 6.5%

India’s economy grew by 7.4% in the January–March quarter, exceeding market expectations of 6.7-6.8%. The data, released by the National Statistics Office, also placed full-year GDP growth at 6.5%—the slowest pace in four years, but higher than expectations of 6.3-6.4%.

The January–March performance signals stronger economic activity in the closing months of the fiscal year. Real GDP during the quarter reached ₹51.35 trillion, up from ₹47.82 trillion in the same period of 2023–24. In nominal terms, the economy expanded by 10.8% in the quarter. For the full year, nominal GDP stood at ₹330.68 trillion, marking a 9.8% increase.

Sector-wise, construction led quarterly growth with a 10.8% expansion, followed by 8.7% in public administration, defence and other services, and 7.8% in financial, real estate and professional services. On an annual basis, these sectors expanded by 9.4%, 8.9%, and 7.2%, respectively.

The primary sector, which includes agriculture and mining, grew by 5.0% in the January–March quarter, up from 0.8% a year earlier. Its annual growth stood at 4.4%, compared with 2.7% in 2023–24.

Private Final Consumption Expenditure, a key component of demand, rose by 6.0% in the January–March quarter and 7.2% for the year, higher than the 5.6% increase recorded in 2023–24. Gross Fixed Capital Formation, an indicator of investment, grew by 9.4% in the quarter and 7.1% for the full year.

Revised figures show GDP growth for the October–December quarter of 2024–25 was 6.4%, up from the earlier estimate of 6.2%, reinforcing the view of consistent, if modest, momentum through the year.