India Defends 7.8% GDP Growth Against Data Manipulation Claims

The Union Government of India dismissed claims that first-quarter economic growth for fiscal 2026-27 was significantly lower than the official 7.8 percent real growth rate. The dispute began after former finance secretary Subhash Chandra Garg argued that growth figures were inflated by revising previous GDP estimates downward from approximately Rs 86 lakh crore to Rs 80 lakh crore. Garg claimed that real GDP growth for the quarter was close to 0 percent, citing negative growth in manufacturing and consumption.

The Ministry of Statistics and Programme Implementation countered that Garg's comparison is flawed because it pits figures from the superseded 2011-12 base-year series against the new 2022-23 series introduced in February 2026. The ministry stated that these revisions reflect a normal cycle of incorporating updated data, including a new Producer Price Index and Index of Industrial Production, rather than an attempt to artificially boost headline growth.

Union Commerce Minister Piyush Goyal accused Garg and former RBI governor Raghuram Rajan of attempting to mislead the public. Speaking in New Delhi, Goyal defended the 7.8 percent rate as a record achievement. Former NITI Aayog CEO Amitabh Kant supported the government, stating that base-year changes are necessary to reflect the modern economy and that comparing data across different series is incorrect.