FM hails 7.4% Q4 GDP growth, says India on track for 'Viksit Bharat'

Union Finance Minister Nirmala Sitharaman, speaking at the Lakshmipat Singhania-IIM Lucknow National Leadership Awards in New Delhi today, said India's industry and the manufacturing activity have all been good during Q4 of FY 2024-25, clocking a real GDP growth of 7.4% in the quarter 4 alone. "For the entire FY 2024-25, the Real GDP growth was 6.5%."

She said India is sustaining the growth, and it has been the fastest-growing economy for four years continuously without a break. "Thanks to the work of small and medium, large industries, which are coming in and making sure our manufacturing capacity, our service capacity, are all intact. Agriculture has also sustained us even during COVID and subsequently," said the FM.

The FM said India is repeatedly proving that its people can achieve excellence in their fields of activity. "We are standing out, compelling the world to look at India with a certain sense of awe. We are in that part of India's history where it just requires confidence in our country's abilities and belief that we can deliver the goal which Prime Minister Narendra Modi, on behalf of all the citizens, has laid out," the FM said.

She said science and technology-related investments have always been a priority in India. "We need to be futuristic, and the kind of progress that we are seeing for every such investment assures me that with the industry being leaders in such an area, we are sure to reach our 2047 goal of becoming Viksit Bharat."

The FM's comments on GDP come following the release of the GDP data by the NSO, which shows that India’s economy grew by 7.4% in Q4 FY25 against 8.4% growth in the same quarter last fiscal. The Q4 estimate was a clear surprise as it was 40 bps higher than the RBI's 93rd professional forecasters survey median estimate of 7%.

The GVA grew by 6.8% in Q4 and 6.4% in FY25. The core GVA grew by 6.4% in FY25. The nominal GDP grew by 9.8% in FY25 as against 12% growth in FY24, in line with flat growth in GDP deflator, indicating a broad-based correction in domestic prices.

In a separate development, the Finance Ministry has approved an additional instalment of Rs 81,735 crore as tax devolution to the state governments, which will be released on 2nd June 2025.

This release is in addition to the regular monthly instalment of Tax Devolution of Rs 81,735 crore, which will be released on 10th June 2025. "The additional instalment of devolution will enable the states to speed up their capital spending, finance their development and welfare-related expenditure and also make available resources for priority projects/schemes of the states."