India fastest growing economy for fourth consecutive year: FM Sitharaman

Business Standard

30-05-2025

India has remained the fastest-growing major economy for the fourth straight year, driven by strong manufacturing, services, and farm sector growth, the finance minister said
Manikant Mishra New Delhi
Finance Minister Nirmala Sitharaman on Friday said India is sustaining its GDP growth momentum as the fastest-growing economy for the fourth year in a row, aided by manufacturing by small, medium and large industries, services and the farm sector.
Speaking at the Lakshmipat Singhania-IIM Lucknow National Leadership Award ceremony in Lucknow, the finance minister said that during the January–March quarter, questions were being raised about the lack of investment from industry as well as capacity building, and their impact on the economy.
"There were concerns earlier that industries were not investing enough and that capacities were not growing. But I'm glad to see that India's manufacturing activity has performed well in the fourth quarter, with Q4 GDP growth at 7.4 per cent. For the full financial year 2024–25, the GDP growth has been recorded at 6.5 per cent," she said.
Sitharaman credited India's sustained economic momentum to the resilience of its small, medium and large industries. The manufacturing and services sectors, along with consistent support from agriculture even during the Covid years, have collectively enabled this robust growth trajectory, she noted.
"India is sustaining this growth as the fastest-growing economy now for the fourth year continuously without a break, thanks to the work of small and medium, large industries, which are coming in and making sure our manufacturing capacity, our service capacity are all intact. Agriculture has also sustained us even during the Covid and subsequently," Sitharaman said.
During the fourth quarter of FY25, manufacturing output grew at 4.8 per cent, while services and farm sector growth was 5.4 per cent each.
The finance minister noted that India had reached a crucial stage in its development where confidence in the nation's own capabilities was essential. She said the global community was no longer viewing India merely as a large middle-class market, but was increasingly recognising the country's growing role in innovation and global leadership.
Highlighting India's digital public infrastructure, she said that the country had received international praise, having been effectively scaled to meet the needs of the country's large population. According to her, people around the world had acknowledged how swiftly Indian citizens, including those in remote areas, were embracing technology.
She also credited Prime Minister Narendra Modi's efforts on boosting the economy through his corruption-free India vision. "The Prime Minister is clear — India must be clean and free from corruption," she said.