India's economy grows by 6.5% year-on-year

According to a new report by one of India's rating agency, in the fourth quarter of the 2024-2025 financial year, the country's real GDP grew by 7.4 per cent, and annual growth was 6.5 per cent, exceeding analysts' expectations. This is reported by ANI, a partner of TV BRICS.

Although growth slowed compared to the average of 8.4 per cent for the previous two years, the fundamentals of the economy remain strong, the agency writes. The forecast for 2025–2026 is 6.2 per cent.

The main drivers of growth were the service and construction sectors. The latter showed particularly high growth rates, up 10.8 per cent in the last quarter.

Investment activity also increased in the fourth quarter of the 2024–2025 financial year. This was facilitated by private sector initiatives and government projects. The main beneficiaries were the manufacturing industry and the electric power sector.

Despite currency market volatility and rising oil prices, analysts expect a stable 2025–2026 financial year with moderate inflation, steady growth and further strengthening of investment activity.

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