India’s GDP Growth Surges to 7.4% in Q4 FY25, Outpacing Forecasts

India’s economy recorded a robust 7.4% year-on-year growth in the March quarter of FY25, surpassing the Reuters poll estimate of 6.7%. The surge was driven by strong rural demand, increased government spending, and resilient domestic consumption, reinforcing India’s position as one of the fastest-growing major economies2.

 

Key Highlights

 

GDP Growth Beats Estimates:

 

India’s March-quarter GDP expanded by 7.4%, exceeding the 6.7% forecast by Reuters economists.

 

Rural Demand & Government Spending:

 

Higher agricultural output and government-led infrastructure projects contributed to the economic boost.

 

Private Investment Trends:

 

While private sector investments remained cautious, state-driven spending helped sustain growth.

 

Inflation & Monetary Policy:

 

Retail inflation eased to 3.16%, paving the way for a potential RBI rate cut in June.

 

Global Economic Context:

 

India remains relatively insulated from global trade tensions, benefiting from lower dependence on goods trade and recent tax cuts.

 

Future Outlook:

 

The IMF projects India’s GDP growth at 6.8% for FY25, supported by strong domestic demand and a thriving services sector.

 

India’s better-than-expected GDP growth signals economic resilience, with policymakers focusing on sustaining momentum through fiscal measures and monetary easing.

 

Source: NDTV Profit, Times of India, and India Today.