India retains top spot as fastest-growing major economy in FY25: Assocham
Growth accelerated more in the second half as compared to the first half, achieving a 7.4% rise during the March quarter.
Industry body Assocham on Friday said India retained its position as the world's fastest-growing major economy in 2024-25, with real GDP expanding 6.5%.
Growth accelerated more in the second half as compared to the first half, achieving a 7.4% rise during the March quarter.
"This pick-up was supported by robust domestic demand, strong public infrastructure investment and shifting global supply chains that increasingly favour India amid geopolitical reorientations," Assocham President Sanjay Nayar said.
He further said construction, manufacturing and services sectors were key drivers of this momentum, strengthening India's macroeconomic stability and global growth leadership.
The 6.5% growth rate during the fiscal year elevated the size of India's economy to $3.9 trillion and held promise of crossing world's fourth-largest economy Japan in FY26.
The Indian economy grew at 7.4% in January-March--the fourth and final quarter of April 2024 to March 2025 fiscal (FY25)--reflecting a strong cyclical rebound that was helped by a rise in private consumption and robust growth in construction and manufacturing.
The expansion of 7.4% during January-March 2025 was the best in the fiscal year.
The 6.5% growth in FY25 was in line with the government projection made in February. This growth was the slowest in four years, and compared to a 9.2% expansion in the previous 2023-24 fiscal year.
Edited by Megha Reddy