Overall Annual Performance (2024–25)
- GDP growth for FY 2024–25 stood at 6.5%, the slowest since the pandemic-hit FY 2020–21.
- This marks a moderation from previous years’ post-COVID recovery pace.
Relevance : GS 3(Indian Economy)
Quarterly Growth Analysis
- Q4 (Jan–Mar 2025):
- Real GDP growth surged to 7.4%, the highest among the four quarters of the year.
- However, still lower than the 8.4% growth in Q4 of 2023–24.
- Q3 (Oct–Dec 2024):
- GDP growth was 6.4%, showing a slight dip before the Q4 recovery.
- This reflects quarterly fluctuations, with a year-end push in economic activity, possibly driven by investment or consumption cycles.
Comparative Perspective
- Since FY 2020–21 (pandemic year), GDP growth had been robust due to the low base effect and recovery momentum.
- The 2024–25 slowdown may indicate the fading of post-pandemic recovery momentum or structural constraints.
Government Outlook
- The Ministry of Statistics and Programme Implementation (MoSPI) released the provisional estimates.
- Despite the moderation, government officials noted that “India held its own”, indicating resilience amid global headwinds.
Possible Implications
- Fiscal policy may need to remain supportive to stimulate demand.
- Private investments and capex cycles could be monitored for sustaining momentum.
- Global factors (e.g. oil prices, geopolitical tensions) could impact future growth.
