India’s GDP Growth Hits 7.4% in Q4 FY25, Highest in Four Quarters; Annual Growth at 6.5%
India’s GDP grows 7.4% in Q4 FY25, the highest in four quarters; full-year growth stands at 6.5%, driven by strong demand and manufacturing rebound.
In the last quarter of FY25, India's economy saw strong growth, with GDP growing by 7.4%, the fastest quarterly growth in the previous year. Despite global challenges, the economy grew steadily, with full-year GDP growth of 6.5%, according to official data released on Friday.
Resilience in the services sector, robust domestic demand, and a manufacturing recovery propelled the fourth-quarter results. This strengthens India's standing as one of the world's major economies with the quickest rate of growth and represents a notable increase over prior quarters.
Economists attribute the growth boom to increased capital expenditures, policy-driven infrastructure expansion, and improved rural demand. The government's focus on Aatmanirbhar Bharat and production-linked incentive (PLI) programs has also helped to boost industrial output and employment.
The data indicates a favourable prognosis for FY26, with analysts anticipating further momentum if macroeconomic stability is maintained, despite concerns about inflation and geopolitical risks.
