Full Breakdown
India Defends 7.8% Q1 Growth Figure as Statistics Ministry Revises Recent GDP Data
9/3/2026, 2:04:46 AM
Core Event
On September 2, Statistics Secretary Saurabh Garg defended the latest estimate that India’s economy grew 7.8 % in the April-June quarter. He said the figure reflects a new GDP series with a 2022/23 base year and extensive methodological updates, not a systematic bias. The ministry noted that quarterly revisions have moved both up and down over the past three years, while annual-level changes have been modest.
Background & Context
The revisions stem from a shift from wholesale-price data to a producer-price index (PPI) and the incorporation of additional data sources. According to the statistics ministry, the PPI now uses more than 300 price deflators, up from about 180 previously, providing finer-grained price information. Officials expect future quarterly revisions to be smaller as more timely data become available, though some adjustments will remain inevitable.
Official Statements & Responses
Saurabh Garg told reporters that the combination of a new base year and richer price data “has led to these revisions.” He rejected claims that the changes were designed to lower the previous year’s base and artificially boost current growth. The ministry emphasized that the revised 7.8 % rate exceeds the Reserve Bank of India’s 7 % forecast for the first quarter and represents an acceleration from 6.9 % a year earlier.
Criticism & Opposition
Former Finance Secretary Subhash Chandra Garg argued that a sharp downward revision to the April-June quarter of the prior fiscal year made the current 7.8 % figure appear stronger than it is. The opposition Congress party seized on the remarks; party General Secretary Jairam Ramesh labeled the numbers “statistical gymnastics.”
Verbatim Quotes
- “It's a combination of both these, which has led to these revisions,” — Saurabh Garg, statistics secretary
- “The PPI provides more granular price information, with the number of deflators used in the estimates rising to more than 300 from about 180 previously,” — Saurabh Garg, statistics secretary
