Manufacturing pulls down Q4 GDP to 7.4 pc; FY25 growth to 6.5 pc: Govt data
Nominal GDP, which includes inflation, recorded a 9.8 pc rise, reaching Rs 330.68 lakh crore in FY25, compared to Rs 301.23 lakh crore in the previous year
India's economic growth slowed to 7.4 per cent in the January-March period, and pulled down the annual growth rate for 2024-25 to a four-year low of 6.5 per cent, mainly due to the manufacturing sector, official data showed on Friday.
The size of the Indian economy rose to Rs 330.68 lakh crore or about USD 3.9 trillion and set the stage for achieving the USD 5 trillion target in the next few years, per provisional estimates released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
In the previous 2023-24 fiscal year, the economy grew 9.2 per cent.
Also read: FY'25 may see net financial savings touching Rs 22 lakh cr, says SBI report
Nominal GDP, which includes inflation, recorded a 9.8 per cent rise, reaching Rs 330.68 lakh crore in FY25, compared to Rs 301.23 lakh crore in the previous year.
In the January–March quarter (Q4) of FY25, the economy grew at 7.4 per cent year-on-year in real terms. The growth in Q4 period was lower than the 8.4 per cent in the year-ago quarter. Nominal GDP for Q4 reached Rs 88.18 lakh crore, reflecting a 10.8 per cent jump from Rs 79.61 lakh crore in the same quarter last year.
Sectoral performance
The construction sector led annual growth among major industries, expanding by 9.4 per cent over the previous year. Public administration, defence and other services followed with 8.9 per cent, while the financial, real estate and professional services sector posted 7.2 per cent growth.
Also read: Why India is facing an investment winter despite booming GDP
During Q4, the construction sector again topped charts with a 10.8 per cent rise, followed by 8.7 per cent growth in public services and 7.8 per cent in financial and related sectors.
Agriculture rebounds
The primary sector — which includes agriculture, livestock, forestry, fishing, mining and quarrying — grew by 4.4 per cent in FY25, a substantial increase from the 2.7 per cent recorded in FY24. Q4 growth in the sector stood at 5.0 per cent, compared to a mere 0.8 per cent in the same period last year.
Demand-side indicators
Private Final Consumption Expenditure (PFCE), a key indicator of household consumption, rose by 7.2 per cent in FY25 compared to 5.6 per cent in FY24.
Meanwhile, Gross Fixed Capital Formation (GFCF), a proxy for investment, increased by 7.1 per cent for the full year and 9.4 per cent in Q4.
GVA trends
Gross Value Added (GVA) at constant prices rose by 6.4 per cent to Rs 171.87 lakh crore in FY25. Nominal GVA grew by 9.5% to Rs 300.22 lakh crore. GVA captures the value generated by all sectors of the economy excluding taxes and subsidies on products.
In Q4, real GVA rose 6.8 per cent to Rs 45.76 lakh crore, while nominal GVA increased by 9.6 per cent to Rs 79.46 lakh crore.
Methodology and caveats
The provisional estimates use the benchmark-indicator method, extrapolating sectoral data from FY24 using various high-frequency indicators. These include industrial production indices, crop and livestock output, transport and port activity, financial results of companies, GST collections, and government expenditure records.
The NSO cautioned that these figures may undergo revision as improved data coverage and updated source inputs become available in due course. The next GDP release, covering Q1 of FY26 (April–June 2025), is scheduled for 29 August 2025.