RismadarVoice Reporters
September 3, 2026
India’s unexpectedly strong economic growth figures have triggered debate among economists and former government officials, with questions raised over whether the country’s latest gross domestic product (GDP) data accurately reflects the strength of the economy.
Government data released this week showed that India’s economy expanded by 7.8 per cent in the April-June quarter compared with the same period a year earlier, exceeding analysts’ expectations of 7.1 per cent growth.
The growth was supported by strong manufacturing activity, increased investment and steady consumer demand, according to official figures.
However, former Finance Ministry official Subhash Chandra Garg questioned the accuracy of the figures, arguing that changes in the comparison base period may have contributed to the higher growth rate.
Former Reserve Bank of India Governor Raghuram Rajan also raised concerns, questioning why strong GDP figures were not translating into stronger job creation, domestic investment and foreign portfolio inflows.
Some private economists have also examined the GDP deflator, a measure used to remove the effects of inflation from economic data, suggesting that it may have underestimated inflation compared with other indicators.
India’s opposition parties criticised the figures, with a senior Congress Party official describing the reported growth rate as “statistical gymnastics” and questioning the government’s economic management.
The Indian government has defended the data, saying changes to GDP calculations were introduced after extensive consultations and were designed to improve accuracy.
The statistics ministry said the revised methodology, introduced in February, updated the base year, improved data sources and expanded the range of goods and services included in calculations.
Officials explained that under the previous calculation method, nominal GDP growth for the April-June quarter would have been lower, but said comparisons between the old and new systems were not directly equivalent because of methodological changes.
The government also defended the inflation adjustment process, saying the new GDP series uses an internationally recognised double-deflation method that separately adjusts output and input costs.
Other economic indicators have supported the view that India’s economy remains strong. Vehicle sales increased by 21 per cent in August, bank credit growth reached a decade-high level of 19 per cent, and net direct tax revenue rose by more than 23 per cent between April and August.
However, survey-based indicators such as the Purchasing Managers’ Index have shown signs of weakening, adding to the ongoing debate over the pace and sustainability of economic expansion.
Economists remain divided, with some saying lower inflation adjustments reflect changing cost pressures, while others argue that the GDP deflator raises questions about the actual strength of economic activity.
India, currently the world’s fifth-largest economy, continues to face pressure to ensure that high growth figures translate into more employment opportunities and broader economic benefits.
