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India's GDP is experiencing robust growth , with real GDP estimated to have grown by 6.5% in FY 2024-25 . The economy is projected to be the fastest - growing major economy globally . Key sectors like construction , public administration , and financial services are showing strong performance . Several factors are contributing to this growth , including increased domestic consumption , government spending and strong performance in the manufacturing and services sectors .
Here's a more detailed breakdown :
Real GDP Growth :
Real GDP , which accounts for inflation , is estimated to have grown by 6.5% in FY 2024-25 .
Nominal GDP Growth :
Nominal GDP , which is not adjusted for inflation , grew by 9.8% in FY 2024-25 .
Sectoral Growth :
The construction sector is estimated to have grown by 9.4% .
Public Administration , Defence & Other Services grew by 8.9% .
Financial , Real Estate & Professional Services grew by 7.2% .
Strong Finish to FY25 :
The Indian economy finished the fiscal year strong , with Q4 showing a 7.4% real GDP growth and a 10.8% nominal GDP growth .
Key Drivers :
Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) have both seen healthy growth rates , indicating strong domestic demand and investment .
Continued Growth Projected :
Morgan Stanley forecasts India to remain the fastest-growing major economy in 2025 and 2026, with real GDP growth projected at 5.9% (Q4/Q4) in 2025 and 6.4% in 2026 .
Positive Outlook :
The strong growth , coupled with stable inflation and increased investment , paints a positive outlook for the Indian economy .
