India’s Q4 FY25 GDP growth estimated at 7.6%: SBI Research
The Indian economy has continued to display resilience, with the latest estimates suggesting that the GDP growth for the fourth quarter (Q4) of fiscal year 2025 (FY25) has reached 7.6%. This is according to a recent report by SBI Research, which was published on Saturday.
The estimate is based on the fiscal 2025 GDP growth estimate of 6.5 per cent by the government, which was released earlier. The report highlights that the Q4 growth has been derived from this estimate, indicating a strong performance by the economy in the final quarter of the fiscal year.
It is worth noting that the Indian economy had a remarkable growth rate in the previous fiscal year, with real GDP growing at 9.2%. This is the highest growth rate achieved in the last 12 years, indicating a strong recovery from the pandemic-induced slowdown.
The SBI Research report is optimistic about the Indian economy’s prospects, despite some global challenges and uncertainties. The report expects a revision of the quarterly numbers in May 2025, which will provide a more detailed picture of the economy’s performance.
The resilience of the Indian economy can be attributed to several factors, including a strong recovery in consumer spending, a surge in investments, and a significant improvement in exports. The report highlights that the consumer spending has been driven by a combination of factors, including a rise in disposable incomes, a decrease in inflation, and a boost in consumer confidence.
Investments have also played a crucial role in driving the economy’s growth, with private investments growing at a rapid pace. This is a significant improvement from the previous year, when private investments were sluggish due to several factors, including the pandemic and regulatory hurdles.
Exports have also been a major contributor to the economy’s growth, with a significant surge in shipments of goods and services. This is due to several factors, including a strong global demand, a depreciation of the rupee, and a rise in the competitiveness of Indian exports.
Despite these positive trends, the report highlights that there are some challenges that the economy needs to address. These include the rising inflationary pressures, the need for further reforms to improve the business environment, and the need to address the growing fiscal deficits.
The report also highlights that the economy is likely to face some challenges in the short term, including the impact of the Russia-Ukraine conflict on global commodity prices and the potential risks posed by the COVID-19 pandemic. However, the report is optimistic that the economy will be able to navigate these challenges and continue to grow at a rapid pace.
In conclusion, the SBI Research report’s estimate of 7.6% GDP growth for Q4 FY25 is a positive sign for the Indian economy. The report highlights that the economy has displayed resilience, driven by strong consumer spending, a surge in investments, and a significant improvement in exports. While there are some challenges that the economy needs to address, the report is optimistic about the economy’s prospects and expects it to continue to grow at a rapid pace.
