SBI Research Defends India's 7.8 Percent GDP Growth Rate

India's economy grew by 7.8 percent in the April-June quarter of the 2026-27 fiscal year, exceeding the Reserve Bank of India's 7 percent forecast. Prime Minister Narendra Modi described the growth as a herculean feat, while the Ministry of Statistics and Programme Implementation clarified that the figures resulted from a transition to a new 2022-23 base-year series rather than data manipulation.

SBI Research released a report dismissing claims that the growth rate was inflated. The report addressed assertions that nominal growth was only 2.6 percent, explaining that such figures resulted from comparing new data with unadjusted historical figures. SBI Research noted that when using the revised base consistently, nominal GDP growth is approximately 9.7 percent, and the National Statistical Office's revisions actually lowered the nominal GDP estimate for the previous year's first quarter.

The data sparked a political dispute between the government and the Indian National Congress. The opposition party cited former finance secretary Subhash Chandra Garg, who argued that without statistical revisions, growth would have been 2.6 percent. Congress General Secretary Jairam Ramesh accused the government of using statistical jugglery to create a distorted picture of the economy. Union Minister Kiren Rijiju responded by questioning if the opposition was in a state of deep intoxication or blinded by loathing of India's growth.