India’s economy continued strong growth in fiscal 2025, due partly to robust personal consumption.
The Indian government said on Friday that the country’s real gross domestic product expanded 7.8 percent year-on-year in the January-March period. Consequently, GDP growth for the full fiscal year through March was 7.7 percent in real terms, up 0.6 percentage points from a year earlier.
The brisk performance is largely attributed to steady growth of personal consumption, which accounts for over 50 percent of GDP in the country with a population of more than 1.4 billion people. Increased government spending in infrastructure, and expanded private capital investment also spurred growth.
In a report released in April, the International Monetary Fund projected India’s nominal GDP to overtake Japan and rank fourth in the world next year.
However, with crude oil prices hovering high due to tensions in the Middle East, it is uncertain whether India will be able to maintain high economic growth.