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    BUSINESS & TRADE                                                  SEPTEMBER 11, 2026       |  The Indian Eye 42

                    Decoding the Data Debate: Why India’s

             Latest GDP Figures Are Stirring Controversy

               A sharp political and economic feud has erupted over India’s Q1 FY27 growth figures, pitting

                  government officials and economists against critics who question the integrity of the data.

            OUR BUREAU
            New York, NY
            I  Programme      Implementation
                ndia’s  Ministry  of  Statistics  and

               (MoSPI)  recently  released  data
            showing the country’s real gross do-
            mestic product (GDP) expanded
            by an impressive 7.8 per cent year-
            on-year in the first quarter of FY27
            (April-June). Outpacing the Reserve
            Bank of India’s 7 per cent projection
            and accelerating from the 6.9 per cent
            recorded in the same period last year,
            the headlining expansion represents
            a  robust  start  to  the  new  financial
            year  despite  the  West  Asia  conflict
            and global uncertainties. However,
            this statistical milestone has been
            met  with  intense  skepticism  from
            policy experts and opposition leaders,
            sparking a fiery national debate over
            base revisions and method credibility.
                At  the  epicenter  of  the  contro-  Union Commerce and Industry Minister Piyush Goyal hit back at critics, firmly asserting that the GDP numbers are compiled through an inde-
            versy is a fundamental dispute over
            how  previous  base  figures  were  ad-             pendent, institutional process free of any ministerial or bureaucratic interference (ANI photo)
            justed.  Former  Finance  Secretary
            Subhash Chandra Garg brought the   thority, as a person who understands   a real GDP growth of 7.4 per cent),  fic.  “That’s  real.  Let’s  not  question
            issue to light by pointing out that   numbers,  that  these  figures  are  not   maintaining that data revisions are   it. Let’s try and sustain it,” Kumar
            the nominal GDP for Q1 FY26 was   made by the government, ministers   standard statistical practices meant   said. Nevertheless, Kumar highlight-
            revised downward under the new    or bureaucrats,” Goyal stated. Invok-  to align GDP with updated price in-  ed crucial areas needing attention,
            2022–23 GDP base—falling from an   ing the Hindi idiom “angoor khatte   dices like the CPI, IIP, and WPI.  pointing out that agriculture grew at
            earlier estimate of Rs 86.1 lakh crore   hain” (sour grapes), Goyal suggested   Adding to this defense, Neel-  a slower 3.6 per cent, directly impact-
            down to Rs 80 lakh crore. Garg con-  that  high-profile  critics  were  letting   kanth Mishra, Executive Director at   ing workers dependent on the sector.
            tended that if the current Q1 FY27   personal disappointment cloud their   the World Bank for India, noted that   In addition to domestic indica-
            nominal GDP of Rs 88.3 lakh crore   analysis.                       the new GDP series introduced in   tors, trade policy plays a central role
            is calculated against the original, un-  Financial institutions and global   February 2026 cleaned up data and   in sustaining long-term growth. Piy-
            revised Rs 86.1 lakh crore estimate,  experts have similarly rushed to de-  improved methodology. Dismissing   ush Goyal emphasized that India is
            nominal growth drops to roughly 2.6   fend the integrity of the figures. State   claims  of  artificially  altered  growth   actively pursuing and expanding Free
            per cent. Critics argue that relying   Bank of India (SBI) published a de-  as “obviously wrong,” Mishra high-  Trade Agreements (FTAs) across
            on this downwardly adjusted base   tailed analysis rejecting the 2.6 per   lighted tangible, hard-to-manipulate   economies representing a combined
            artificially  inflates  current  growth   cent calculation, noting that com-  economic indicators showing strong   GDP of around $60 trillion. Accord-
            percentages.                      paring  a  new  series  figure  directly   momentum—such as August person-  ing to the minister, these agreements
                The government and several    to an older, unrevised base is math-  al vehicle dispatches surging 35 per   will grant Indian businesses prefer-
            leading  economic  authorities  have   ematically invalid. “Some estimates   cent year-on-year, two-wheeler sales   ential access to nearly two-thirds of
            forcefully dismissed these claims,  are now ascribing a 2.6% growth in   rising over 20 per cent, commercial   global trade, creating vast interna-
            characterizing the pushback as statis-  nominal GDP for the latest quarter...  vehicle  sales jumping past  40 per   tional opportunities.
            tically flawed and politically motivat-  by calculating yearly growth rate us-  cent, and accelerating credit growth.  While the data battle continues,
            ed. Union Commerce and Industry   ing Rs 88.3 lakh crore... over Rs 86.1   Former NITI Aayog Vice Chair-  the broader economic context re-
            Minister  Piyush  Goyal  hit  back  at   lakh crore... This is completely unso-  man Rajiv Kumar also defended the   mains anchored by expanding global
            critics, firmly asserting that the GDP   licited and a sure sign of intellectual   headline  figure  as  genuine,  empha-  trade prospects and domestic mo-
            numbers are compiled through an in-  dishonesty,” SBI reported. The bank   sizing an even stronger 8.2 per cent   mentum, even as experts monitor
            dependent, institutional process free   demonstrated that proper compar-  growth in Gross Value Added (GVA)   lingering concerns around food in-
            of any ministerial or bureaucratic in-  ison under the new series yields a   alongside solid gains in electricity   flation and real-wage growth across
            terference. “I can tell you with full au-  nominal growth of 9.7 per cent (and   consumption and passenger traf-  lower-income segments.

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