New Delhi— India has reaffirmed its status as the world’s fastest-growing major economy, posting a robust 6.5% increase in real GDP for the fiscal year 2024–25, driven by strong private consumption and capital investment, industry experts said Friday.
In nominal terms, GDP grew by 9.8%, underscoring the country’s resilience and solidifying its position on the global economic stage, according to Hemant Jain, President of the PHD Chamber of Commerce and Industry (PHDCCI).
Private Final Consumption Expenditure (PFCE) rose by 7.2% in the fourth quarter, while Gross Fixed Capital Formation (GFCF)—a measure of fixed investment—grew by 7.1%, reflecting an ongoing investment-driven growth cycle.
“Growth in Gross Value Added (GVA) during Q4 was led by a 10.8% surge in the construction sector, followed by 8.7% growth in public administration and defense-related services,” Jain noted.
Across sectors for the full fiscal year, construction emerged as the top performer with a growth rate of 9.4%, trailed by public administration and defense (8.9%) and financial, real estate, and professional services (7.2%).
Per capita real GDP increased by 5.5%, reaching ₹1.33 lakh, while per capita Gross National Income (GNI) rose by 5.4% to ₹1.31 lakh—figures that Jain said indicate “broad-based improvements in economic well-being.”
Analytics firm Crisil highlighted that the fourth-quarter growth was propelled by a strong rise in fixed investments, even as private consumption slightly decelerated. The uptick in GFCF was fueled by continued momentum in public capital expenditure at both central and state levels, Crisil noted, adding that rising domestic consumption is expected to further support industrial activity.
Madhavi Arora, Chief Economist at Emkay Global Financial Services, said the Q4 performance reflected “back-loaded” spending by both central and state governments, with growth driven primarily by public capital outlays.
“Overall, growth has aligned with government estimates, with capital formation maintaining a steady pace,” Arora said. (Source: IANS)
