India’s GDP grew by 6.5% in the 2024/2025 fiscal year, ending in March, marking a significant slowdown from the 9% growth of the previous fiscal year, according to official figures released on Friday.
However, despite its cooling economic growth, the world’s most populous country – population 1.4 billion – is still one of the top global performers.
Its GDP growth for 2024/2025 slightly exceeded market forecasts of 6.3%, buoyed by a strong performance in January-March 2025.
Last year, India’s economic activity was hampered by a slowdown in manufacturing, weakened urban consumer spending, and monetary policy measures. However, the economy rebounded in the last two quarters, supported by strong agricultural yields.
Nonetheless, tariffs imposed by former US President Donald Trump’s administration risk hindering future progress.
In the January-March 2025 quarter, GDP grew by 7.4% year-on-year, the highest of the fiscal year, surpassing the 6.2% increase of the previous quarter.
The National Statistics Office highlighted in a press release that the January – March quarter’s growth was driven by a booming construction sector.
