India’s Q4 GDP growth hits 7.4%, surpasses RBI forecast; FY25 expands by 6.5%

For the full fiscal year, real GDP growth came in at 6.5 percent, marginally below the Reserve Bank of India’s (RBI) estimate of 6.6 percent.

Q4 GDP exceeds RBI estimate

The central bank had projected a Q4 growth rate of 7.2 percent, which the economy slightly outpaced, clocking in at 7.4 percent. For the ongoing fiscal year 2025–26, the RBI has maintained a growth forecast of 6.5 percent.

Nominal GDP rises nearly 10%

Nominal GDP, which factors in inflation, grew by 9.8 percent in FY25, reaching ₹330.68 trillion. In Q4 alone, nominal GDP registered a 10.8 percent year-on-year increase, touching ₹88.18 trillion.

Construction, services sectors drive GVA expansion

Gross value added (GVA) at constant prices rose by 6.4 percent in FY25, while Q4 saw a 6.8 percent year-on-year increase.

The construction sector led the gains with a 9.4 percent annual rise and a notable 10.8 percent growth in the fourth quarter.

Public administration, defence, and other services expanded by 8.9 percent over the year, while financial, real estate, and professional services recorded a 7.2 percent increase.

Quarter-wise growth trend in FY25

India’s GDP growth stood at 6.7 percent in Q1 of FY25, before falling to a seven-quarter low of 5.4 percent in Q2. Growth rebounded to 6.2 percent in Q3, supported by strong performance in services and higher government capital spending.

The next GDP data release, covering the first quarter of FY26, is scheduled for August 29, 2025.