India’s GDP growth accelerated to a four-quarter high of 7.4% YoY in Q4FY25, up from a revised 6.4% in Q3, surpassing market expectations but slightly trailing the implied Q4 figure as per the CSO’s second advance estimate of 7.6%. This robust performance was driven by strong investment demand—evident in Gross Fixed Capital Formation growth (+9.4%) and record-high quarterly net exports—partly offset by lower-than-expected expansion in private consumption and slower (15-quarter low) growth in government spending. Rural demand showed resilience while urban demand indicators remained muted.
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