Govt defends GDP data after ex-FS claims Q1 growth 2.6%
The Indian government has defended its revised GDP data, asserting that the transition to a new base year and updated methodology is statistically sound. Critics, including a former finance secretary, had questioned the revisions, suggesting they masked lower economic growth figures.
Why it matters
GDP data is the primary indicator of national economic health; disputes over methodology can impact investor confidence and the perceived credibility of government economic policy.
NEW DELHI: Govt on Wednesday strongly defended the sanctity of GDP data, and argued its critics' arguments are flawed. Critics pointed to the revision in nominal GDP number in Q1 FY 25-26, the base period for calculating this FY's QI growth rate. Govt said the revision was consistent with the new methodology. The base year has changed, the use of producer price index provides more granular information, and more data is available. This led to the revision, which is completely kosher, govt said.The statistics ministry said Q1 GDP estimate for 2025-26 was lowered from Rs 86 lakh crore to Rs 80 lakh crore as it was based on earlier series (2011-12 base year), which has now been updated to 2022-23.Former finance secretary Subhash Chandra Garg had said nominal GDP growth would have been about 2.6% during April-June 2026-27 and real GDP growth close to 0% if last year's GDP had…
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in