India’s economy experienced a robust expansion of 7.4% in the fourth quarter (January–March) of FY2024–25, surpassing expectations and marking the highest quarterly growth in the fiscal year. This surge was primarily driven by strong performances in the construction and manufacturing sectors, along with a notable increase in net indirect tax collections .

Despite this impressive quarterly performance, the overall GDP growth for FY2024–25 stood at 6.5%, the slowest in four years, down from 9.2% in the previous fiscal year . The construction sector led the growth with a 10.8% increase in Q4, followed by significant contributions from public administration, defense, and other services .

Union Finance Minister Nirmala Sitharaman highlighted that India has maintained its position as the fastest-growing major economy for four consecutive years, attributing this resilience to robust industrial and agricultural sectors . Looking ahead, the Reserve Bank of India projects a GDP growth rate of 6.5% for FY2025–26, supported by factors such as anticipated monetary easing, a favorable monsoon forecast, and stable inflation .

While the strong Q4 performance underscores India’s economic resilience, challenges remain, including subdued urban consumption and global economic uncertainties. Nevertheless, the country’s focus on infrastructure development and policy reforms continues to bolster its growth trajectory.

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