Economists have reacted positively to the GDP data revealed by the government, saying it has been robust because of good domestic consumption, government investment, and relatively lower dependence on exports.
India’s economy grew by 7.4 per cent in the January-March quarter (Q4) of FY25, beating expectations and marking the strongest quarterly growth of the fiscal year. This was a sharp rise from the 6.2 per cent recorded in the previous quarter.
The Reserve Bank of India (RBI) had forecast 7.2 per cent growth for Q4 and 6.6 per cent for the full FY25 in its last monetary policy meeting. For FY26, the central bank has projected 6.5 per cent growth, citing expected improvement in private consumption and steady investment activity.
Manoranjan Sharma, Chief Economist at Infomeric Valuations and Ratings, said the Indian economy’s rise by 6.5 per cent in FY 24 strengthens the world’s sentiment that India is one of the fastest-growing economies in the world. “Growth outlook has remained robust because of the domestic consumption, govt investment and relatively lower dependence on exports,” he said.
Ranen Banerjee, Partner and Leader, Economic Advisory at PwC India, noted that the 6.5% growth for FY25 is a strong outcome despite global headwinds. “The manufacturing growth has printed weak and it is a matter of concern, especially given the trade-related disruptions and global economic slowdown expected in FY26,” he said.
Banerjee also pointed out that Gross Fixed Capital Formation rose by 8.8 per cent, possibly due to increased private capex, as government capital expenditure did not rise significantly over the previous year.
Anshuman Magazine, Chairman & CEO of CBRE India, Southeast Asia, Middle East & Africa, said the growth beat expectations and showed resilience.
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