New Delhi – India’s economy recorded a solid 7.4% growth in the fourth quarter of the financial year 2024–25, bringing the full-year GDP growth to 6.5%, according to official data released on Friday. The expansion was driven by strong performances in agriculture, construction, and the services sector.
The agriculture sector saw significant improvement, growing 4.6% in 2024–25 compared to 2.7% the previous year when erratic monsoons had impacted crop yields. In Q4 alone, agriculture growth rose to 5%, a sharp rise from just 0.8% in the same period last year, according to data from the Ministry of Statistics.
The construction sector led the way with an impressive 9.4% annual growth, and a strong 10.8% growth in Q4. The Public Administration, Defence & Other Services sector also performed well, growing 8.9% annually, while Financial, Real Estate & Professional Services posted a 7.2% growth for the full year and 7.8% in Q4.
Consumer spending reflected strong economic momentum, with private final consumption expenditure growing 7.2% in 2024–25, up from 5.6% in the previous year. This was largely fueled by a rise in rural demand, supported by better incomes from the agriculture sector.
In addition to a rebound in agriculture, India’s growth was also driven by large-scale government investments in infrastructure projects, including highways, railways, ports, and airports. These projects helped sustain economic momentum, keeping India at the forefront as the fastest-growing major economy, despite global economic headwinds.
The International Monetary Fund (IMF) has projected that India will be the only major economy expected to grow above 6% in 2025–26, as global trade faces disruption due to increasing U.S. tariffs and a broader economic slowdown.
With inputs from IANS