Indian GDP Rises More Than Expected

The Indian GDP expanded 7.4% from the previous year in the March quarter of 2025, accelerating from the upwardly revised 6.4% growth in the earlier period and sharply above market expectations of a 6.7% rise, marking the sharpest growth rate of the fiscal year.

The recovery pointed to traction in Indian economic growth after a period of softening, as lower food and energy prices improved eased benchmark interest rates and spurred investment, while India's low dependence on exports made it robust to global tariff threats.

Gross fixed capital formation surged by 9.4% in the period, the most in nearly two years, and private consumption expanded by 6%.

In the meantime, the net foreign demand had a positive impact in the GDP growth, with exports rising by 3.9%, while imports slumped by 12.7%.

Regarding the full fiscal year of 2025, the Indian GDP expanded by 6.5%, the least in four years.