Statistics Ministry Rebuts Criticism Over Q1 GDP Growth, Reaffirms 7.8% Expansion
The Union Ministry of Statistics and Programme Implementation (MoSPI) issued a detailed rebuttal defending India's first-quarter (April-June 2026) Gross Domestic Product (GDP) growth estimate of 7.8%, following sharp criticism from former Finance Secretary Subhash Chandra Garg. The debate emerged after Garg publicly argued that statistical revisions to previous base-year data created an inflated comparison, claiming that real economic expansion during the quarter was closer to 2.6% or near flat in real terms.
In response, MoSPI clarified that its methodology follows international standard practices, utilizing updated Producer Price Index (PPI) deflators and comprehensive economic indicators to measure output accurately. The ministry asserted that the 7.8% growth rate truly reflects strong performances in the manufacturing, construction, and services sectors, which cushioned the Indian economy against global headwinds like West Asian conflict and elevated global bond yields.
The GDP numbers have sparked political and economic discussions regarding deflator calculations and base-year adjustments. While opposition leaders highlighted Garg's observations to challenge official economic claims, government economists and market analysts emphasized that high-frequency indicators, including tax revenues and domestic consumption, support the resilience of India's economic expansion.
