Why Was ₹6 Lakh Crore Shaved Off Last Year’s GDP? Govt Explains the Numbers
Garg said revised base-year figures and weak manufacturing and consumption cut the government’s reported quarterly growth to 2.6 percent.
- The Government of India reported 7.8% GDP growth for the April-June quarter of FY27 on Wednesday, comfortably beating the Reserve Bank's more conservative 7% estimate.
- Recalculating the growth against the original, unrevised base, former Finance Secretary Garg argued that real quarterly GDP growth was closer to 2.6% rather than 7.8%.
- Garg noted the base figure was revised down to Rs 80 lakh crore, a change of roughly Rs 6 lakh crore, and that "negative growth of consumption" undercut the government's growth claims.
- When pressed on whether numbers were revised for appearance, Garg reiterated he was "responsibly making that statement" about the lack of real economic growth.
- Prime Minister Narendra Modi hailed the numbers as proof of the country's "collective strength" against "doomsayers," while Congress flagged concerns over weak agricultural growth, manufacturing, and rising debt.
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Get latest articles and stories on Business at LatestLY. The Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday rejected claims that last year's GDP estimate was revised down to make economic growth in the first quarter of FY27 appear stronger, saying the change was the result of a new base year, improved data sources and updated methodology. Business News | MoSPI Rejects Claim That Last Year's GDP Was Revised Down to Boost…
The Economic Times
Times of IndiaWhy was ₹6 lakh crore shaved off last year’s GDP? Govt explains the numbers
The government clarified GDP revisions are due to series changes and improved data. Last year's GDP estimate was adjusted after a new base year was introduced. Manufacturing's negative inflation reflects separate input and output price deflation. GDP inflation differs from CPI and WPI as it covers the entire economy. Private consumption expenditure calculations do not directly use double deflation.
Not 7.8%, 2.6% is 'real' GDP growth? Why Subhash Chandra Garg is wrong
GDP numbers are periodically revised when better data becomes available and when the statistical system is updated. The recent exercise involved moving to a new base year of 2022-23, along with changes in data sources and estimation methods.
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