India’s economy expanded by 6.5% in the financial year 2024–25, as per the latest figures released by the Ministry of Statistics and Programme Implementation (MoSPI). While this marks a slowdown compared to the previous year, the growth is in line with the Reserve Bank of India’s (RBI) projections. Despite this moderation, India continues to outperform major global economies such as China and the United States.
The fourth quarter saw a GDP growth of 7.4%, a decrease from 8.4% in the same period last year. However, it represents a recovery from the third quarter’s 6.4% and the second quarter’s 5.6% growth, suggesting steady momentum in the latter half of the fiscal year.
Notably, China reported a GDP growth of 5.4% in Q1 2025, while the US economy shrank by 0.3%. Japan and Canada also posted lower growth figures at 0.2% and 2.2% respectively, underscoring India’s relative economic resilience.
A key contributor to India’s GDP growth was the agriculture sector, which recorded a significant annual increase of 4.6%, up from 2.7% the previous year. However, the manufacturing sector witnessed a notable decline, with growth dropping to 4.5% from 12.3% in FY24.
Retail inflation also eased considerably, dropping to 3.16% in April 2025 — its lowest level since July 2019 — helping sustain consumer spending and improving macroeconomic stability. Real GDP for FY25 is estimated at ₹187.97 lakh crore, while nominal GDP reached ₹330.68 lakh crore.
