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India’s economy grew by faster-than-expected 7.4% in the March quarter

  • In the January to March 2025 quarter, India’s GDP expanded by 7.4%, exceeding projections and solidifying its status as the fastest-growing major economy.
  • This growth follows a 6.2% increase in the previous quarter and is supported by factors such as monetary easing, expectations of an above-normal monsoon, and lower food inflation.
  • Key contributors include strong rural consumption, government infrastructure spending on roads and factories, and steady investment despite weak private sector appetite and global uncertainties.
  • The real GDP rose 6.5% for the full 2024-25 year with private final consumption expanding 7.2%, while inflation declined to 3.16%, enabling growth-focused policies according to economists like Aditi Nayar and Dharmakirti Joshi.
  • Despite global challenges and US tariffs on Indian goods, the economy's resilience suggests continued steady growth, with expert forecasts projecting around 6.5% growth in fiscal 2025-26 supported by robust domestic demand and policy stability.
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BBC News broke the news in United Kingdom on Friday, May 30, 2025.
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