India’s GDP Growth Accelerates to 7.4% in Q4 FY2024-25, Boosted by Agriculture and Construction
New Delhi, May 30, 2025 — India’s economy posted a robust 7.4% GDP growth rate in the fourth quarter of FY2024-25 (January to March), according to data released by the Ministry of Statistics and Programme Implementation on Friday. This marks a sharp acceleration from the 6.2% growth seen in Q3, powered by strong performances in agriculture, construction, and services sectors.
Full-Year Growth Stands at 6.5%
For the entire fiscal year 2024-25, India recorded an economic growth rate of 6.5%, reinforcing its position as one of the fastest-growing major economies in the world. This comes despite global headwinds such as inflationary pressures, supply chain disruptions, and trade tensions.
According to official estimates, the economy has shown remarkable resilience and internal demand strength, driven by public investment and rural revival.
Agriculture and Construction Drive Momentum
The agriculture sector emerged as a key contributor to this growth. In Q4, the sector grew by 5%, compared to just 0.8% in the same quarter last year. For the full fiscal year, agriculture expanded by 4.6%, a significant jump from 2.7% in FY2023-24.
The construction sector, meanwhile, posted an impressive 10.8% growth in Q4, with the full-year growth standing at 9.4%. This surge was largely fueled by increased government spending on infrastructure.
Other key sectoral highlights from Q4 include:
- Public administration, defense, and other services: 8.7% growth
- Financial, real estate, and professional services: 7.8% growth
Private Consumption Shows Strong Recovery
India’s private final consumption expenditure (PFCE) — a key indicator of domestic demand — rose by 7.2% in FY2024-25, compared to 5.6% the previous year. This rebound reflects a revival in household spending and consumer confidence, supported by declining inflation and employment recovery.
Infrastructure Investment Powers Growth
Massive public investment in highways, railways, airports, and ports has acted as a strong backbone for this quarter’s growth. Government-led capex initiatives have not only spurred economic activity but also contributed to job creation and rural demand revival.
India Stands Out Amid Global Slowdown
The International Monetary Fund (IMF) has reaffirmed India’s status as a standout economy. In its latest forecast, the IMF projects India to be the only major economy to grow over 6% in FY2025-26, even as global economies struggle with the fallout of U.S. tariffs and trade uncertainties.
“At a time when most economies are battling turbulence from American tariffs and geopolitical risks, India remains firmly on a high-growth trajectory,” the IMF noted.
India’s Q4 GDP surge to 7.4% highlights the country's economic resilience, powered by a strong agriculture base, robust construction activity, and growing domestic demand. As the global economic landscape continues to shift, India’s policy-driven growth model and structural reforms offer a beacon of stability for investors, consumers, and policymakers alike.