India's Economic Growth Surges to 6.7% in Q1 FY25, Ministry Reports

New Delhi, Sep 27 (KNN) In its latest monthly update, the Ministry of Finance has highlighted a robust economic performance in India during the first quarter of FY25.

The report indicates that India's economy has not only recovered from the impacts of the pandemic but has also undergone transformational changes across various productive sectors.

By the end of FY24, the country achieved an impressive cumulative real GDP growth of approximately 27 percent from FY21, laying a strong foundation for continued expansion.

The data reveals that India's GDP at constant prices grew by 6.7 percent in Q1 FY25, signaling a sustained upward trajectory. Notably, growth across all major non-agricultural sectors remained well above 5 percent, underscoring a broad-based economic expansion.

The favourable monsoon season has also contributed positively, with kharif sowing gaining momentum, which bodes well for agricultural production in the coming months.

A key aspect of this growth narrative is the robust demand across major components of the economy. Private consumption, fixed investment, and exports have all shown significant increases, reflecting a strengthening of the domestic and international economic landscape.

Although the general government expenditure is gradually picking up due to the general elections held in April-June, the overall investment climate remains positive, with a notable growth of 7.5 percent in Q1. This indicates a reinvigorated private investment cycle, crucial for sustaining long-term economic growth.

High-frequency indicators further corroborate the Ministry's optimistic outlook. Growth in Goods and Services Tax (GST) collections, along with encouraging trends in purchasing managers' indices, points to a vibrant business environment. Additionally, rising air and port cargo volumes signal robust trade activity, further fueling economic expansion.

Analysts suggest that these developments are reflective of a resilient economy that is not only recovering but also adapting to new challenges. With the government's commitment to fostering an environment conducive to growth, there is optimism about sustaining this momentum through the remaining quarters of FY25.

As India navigates through this dynamic economic landscape, stakeholders across sectors remain watchful, anticipating continued growth and transformational changes that promise to further enhance the country's position on the global economic stage.

(KNN Bureau)