India’s GDP Grows 6.5% in 2024-25: NSO Releases Provisional Estimates

India’s economy continues its growth momentum as the National Statistical Office (NSO) released the Provisional Estimates (PE) of GDP for FY 2024-25 and Quarterly GDP data for January-March 2025 (Q4). According to the data, real GDP grew by 6.5%, and nominal GDP rose by 9.8% during the financial year 2024-25.

Let’s dive into the key highlights, sectoral performance, quarterly updates, and methodology used for these estimates.

Key Highlights of GDP Estimates 2024-25

Real GDP Growth (Constant Prices): 6.5%

Nominal GDP Growth (Current Prices): 9.8%

Q4 Real GDP Growth: 7.4%

Q4 Nominal GDP Growth: 10.8%

Construction Sector Growth: 9.4% annually, 10.8% in Q4

Public Administration, Defence & Other Services: 8.9% annual, 8.7% in Q4

Financial, Real Estate & Professional Services: 7.2% annual, 7.8% in Q4

Primary Sector Growth: 4.4% in FY 2024-25 vs 2.7% in FY 2023-24

Private Final Consumption Expenditure (PFCE): 7.2% growth

Gross Fixed Capital Formation (GFCF): 7.1% growth annually, 9.4% in Q4

India’s Annual GDP Performance in FY 2024-25

Real GDP at Constant Prices

Rs 187.97 lakh crore in FY 2024-25

Increased from Rs 176.51 lakh crore in FY 2023-24

Reflects a 6.5% growth rate

Nominal GDP at Current Prices

Estimated at Rs 330.68 lakh crore

Up from Rs 301.23 lakh crore in FY 2023-24

Shows 9.8% growth

Gross Value Added (GVA)

Real GVA: Rs 171.87 lakh crore in FY 2024-25 (6.4% growth)

Nominal GVA: Rs 300.22 lakh crore in FY 2024-25 (9.5% growth)

Quarterly GDP Update: Q4 of FY 2024-25 (January–March)

Real GDP (Constant Prices)

Rs 51.35 lakh crore in Q4 FY 2024-25

Up from Rs 47.82 lakh crore in Q4 FY 2023-24

Growth rate: 7.4%

Nominal GDP (Current Prices)

Rs 88.18 lakh crore in Q4 FY 2024-25

Up from Rs 79.61 lakh crore a year ago

Growth rate: 10.8%

Gross Value Added (GVA)

Real GVA: Rs 45.76 lakh crore in Q4 FY 2024-25 (6.8% growth)

Nominal GVA: Rs 79.46 lakh crore in Q4 FY 2024-25 (9.6% growth)

Sector-Wise Performance

Construction Sector

Annual Growth: 9.4%

Q4 Growth: 10.8%

One of the strongest performing sectors, driven by infrastructure investment.

Public Administration, Defence & Other Services

Annual Growth: 8.9%

Q4 Growth: 8.7%

Boosted by increased government spending and welfare schemes.

Financial, Real Estate & Professional Services

Annual Growth: 7.2%

Q4 Growth: 7.8%

Helped by improved credit offtake and steady real estate demand.

Primary Sector (Agriculture, Forestry, Fishing)

Annual Growth: 4.4% vs 2.7% last year

Q4 Growth: 5.0% vs 0.8% last year

Higher crop yields and livestock output supported the sector.

Expenditure-Based GDP Components

Private Final Consumption Expenditure (PFCE)

Growth Rate: 7.2% in FY 2024-25

Reflects higher consumer spending due to rising incomes and urban demand.

Gross Fixed Capital Formation (GFCF)

Annual Growth: 7.1%

Q4 Growth: 9.4%

Indicates strong investment activity in infrastructure and manufacturing.

Methodology Used for GDP Estimates

The Benchmark-Indicator Method was used to estimate GDP, where past year data is extrapolated using current sector indicators. Key sources include:

IIP (Index of Industrial Production)

Corporate earnings of listed companies

Agricultural output estimates

Production data of coal, cement, crude oil, steel, etc.

Rail, air, and port traffic statistics

Commercial vehicle sales

Banking data (deposits & credit)

Insurance premium data

GST collections and tax data

State and Central Government expenditure reports

These indicators were compiled up to 27th May 2025 to prepare the estimates.

Upcoming GDP Data Release

The next release will cover the GDP estimates for Q1 of FY 2025-26 (April–June) and is scheduled for 29th August 2025.

Conclusion

India’s economic performance in FY 2024-25 reflects a stable recovery with broad-based growth across key sectors. Construction, government services, and finance led the charge, supported by strong consumer and investment demand.

While the global economic environment remains uncertain, India’s domestic indicators remain resilient, pointing toward sustained momentum in the coming quarters.

FAQs

What is India’s real GDP growth in FY 2024-25?

India’s real GDP grew by 6.5% in FY 2024-25 as per NSO’s provisional estimates.

Which sector performed the best in FY 2024-25?

The construction sector performed the best, growing 9.4% annually and 10.8% in Q4.

When will the next GDP data be released?

The next quarterly GDP estimates (April–June 2025) will be released on 29th August 2025.