India's GDP Growth Slows to 7.4% in Jan-Mar Quarter, Shows Government Data
India’s Gross Domestic Product (GDP) growth slowed to 7.4% in the January-March quarter of the financial year 2024-25, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday. This marks a moderation from the 8.4% growth registered in the preceding October-December quarter.
Despite the slowdown, the Q4 growth figure remains robust compared to global peers, driven by resilient domestic consumption and strong performance in sectors like manufacturing and construction. However, analysts note that the pace of expansion is showing early signs of tapering due to global economic uncertainties and tightening financial conditions.
For the full financial year FY25, India’s economy is expected to maintain its position as one of the fastest-growing major economies, although growth projections may face revisions depending on monsoon patterns, inflation trends, and geopolitical developments.
Economists suggest that the Reserve Bank of India (RBI) will closely monitor these indicators before making further policy decisions, especially in the run-up to its next monetary policy review.
The data comes at a time when the government is emphasizing fiscal consolidation and infrastructure-led growth, aiming to strike a balance between supporting the economy and maintaining macroeconomic stability.
FAQ
1. What is the GDP growth rate for India in the January-March 2025 quarter?
The GDP growth rate for India in the January-March quarter (Q4 FY25) is 7.4%, according to official government data.
2. How does this compare to the previous quarter?
In the October-December quarter (Q3 FY25), India’s GDP grew by 8.4%, indicating a slowdown in Q4.
3. What are the main reasons for the slowdown in GDP growth?
The slowdown is attributed to base effects, global economic uncertainties, sluggish exports, and a slight dip in domestic demand in some sectors.
4. Which sectors contributed most to the GDP growth?
Sectors such as manufacturing, construction, and services contributed significantly to growth, while agriculture showed mixed performance.
5. Is India still among the fastest-growing major economies?
Yes, despite the slowdown, India remains one of the fastest-growing major economies in the world.
6. Will this affect the Reserve Bank of India’s monetary policy?
It could influence the RBI's future interest rate decisions, especially if growth continues to slow and inflation remains stable.
7. What is the projected GDP growth for the full FY25?
Full-year projections for FY25 may hover around 7%, though this could change based on economic conditions and government policy.
8. When will the next GDP data be released?
The next GDP estimate, covering April-June 2025 (Q1 FY26), is expected to be released by the end of August 2025, subject to the official calendar.
Publish on may 30,2025 by :selvi