Archive · 5 Sep 2026
India’s 7.6% Growth Story Faces Base-Year Questions
India announced that its economy grew by 7.6% in one quarter.
This was higher than many experts had expected.
Former finance secretary Subhash Chandra Garg questioned how the number was calculated.
He said the comparison number from the previous year had been made smaller.
Using the older comparison number, he estimated growth at about 2.6% instead.
The government and other economists said changing the comparison base is a normal statistical process.
They also said numbers made with different bases should not be compared directly.
The article says both exaggerated bad news and exaggerated good news could harm the economy.
It recommends publishing calculations using both bases for greater clarity.
India reported 7.6% economic growth in Q1 of fiscal 2026-27, exceeding several forecasts.
Former finance secretary Subhash Chandra Garg questioned the figure after a downward revision to the previous year’s comparison base.
Garg said growth would have been about 2.6% if the earlier GDP estimate had remained unchanged.
The government and economists said revising the base year is standard statistical practice and that figures using different bases cannot be directly compared.
The article argues that publishing calculations under both base years could reduce speculation and improve economic transparency.
- Who
- The Central government, former finance secretary Subhash Chandra Garg, the Ministry of Statistics, and other economists are central to the debate.
- What
- A reported 7.6% quarterly growth rate has prompted disagreement over whether a revised GDP comparison base made the increase appear unusually large.
- When
- The data was reported about five days before the article; it concerns Q1 of fiscal 2026-27 compared with Q1 of fiscal 2025-26.
- Where
- India.
- Why
- The previous year’s GDP estimate was revised downward, leading Garg to question the growth calculation, while the government defended the revision as standard statistical practice.
Base-Year Critique
Statistical Defense
Meaning of the 7.6% figure
Base-Year Critique
Subhash Chandra Garg argues that lowering the previous year’s GDP comparison figure made the reported growth rate appear exceptionally high.
Statistical Defense
The government and economists say the revised base reflects accepted statistical practice and should be used consistently.
Comparing different calculations
Base-Year Critique
Garg says that retaining the earlier comparison figure would produce growth of about 2.6%, a result more understandable to the public.
Statistical Defense
The government and economists argue that data calculated using old and new bases represent different sets of numbers and cannot be directly compared.
Economic narrative and transparency
Base-Year Critique
Critics warn that the reported figure could contribute to an overly optimistic account of the economy despite concerns about jobless growth and premiumisation.
Statistical Defense
The article cautions that an artificially negative narrative could weaken investment, while also saying the government should release more data to prevent speculation.
- Reported growth
- 7.6% in Q1 of fiscal 2026-27
- Former official raising concerns
- Subhash Chandra Garg, a former finance secretary
- Revised comparison figure
- Q1 FY 2025-26 GDP was described as revised from Rs 86 lakh crore to Rs 80 lakh crore
- Alternative growth estimate
- Garg said growth would have been about 2.6% using the earlier comparison figure
- Earlier and later GDP figures cited
- Approximately Rs 88.26 lakh crore in Q1 FY 2026-27 compared with Rs 86.05 lakh crore in Q1 FY 2025-26
- Government’s position
- Base-year revisions are accepted statistical practice, and figures calculated with different bases are not directly comparable
- Article’s recommendation
- Release growth calculations using both base years during the first three years