Archive · 2 Sep 2026
Government Defends 7.8% GDP Growth as Congress Raises Doubts
India reported that its economy grew by 7.8% between April and June 2026.
This was faster than many experts expected.
Government ministers said the number showed that the economy was strong.
Piyush Goyal said critics were making an unfair comparison because the government had changed the data series and its base year.
Former officials Raghuram Rajan and Subhash Chandra Garg questioned whether the figure showed the economy’s true condition.
Garg said the growth would have been 2.6% if last year’s original number had not been revised.
Congress used these criticisms to say the government was polishing the economic picture.
The disagreement is about whether the official number accurately describes jobs, investment and broader economic conditions.
India recorded 7.8% GDP growth in the April-June 2026 quarter, exceeding analyst expectations.
Piyush Goyal said critics were comparing an old data series with a new one whose base year had changed.
Former officials Raghuram Rajan and Subhash Chandra Garg questioned whether the reported growth reflected economic reality.
Garg argued that growth would have been 2.6% without a retrospective revision to last year’s GDP figures.
Congress accused the government of using public relations and statistical revisions to present an overly positive picture of the economy.
- Who
- Union ministers Piyush Goyal and Kiren Rijiju defended the GDP figures, while Raghuram Rajan, Subhash Chandra Garg and Congress leaders questioned them.
- What
- A political and economic dispute has emerged over India’s reported 7.8% GDP growth and revisions to earlier GDP data.
- When
- The figures covered April-June 2026 and were released on 31 August.
- Where
- The figures were discussed publicly, including at the Automotive Component Manufacturers Association’s annual session in Delhi and on X.
- Why
- Government representatives said the growth figure was valid under the updated data series, while critics argued that revisions and economic indicators such as jobs and investment presented a less positive picture.
Government and BJP Defense
Congress and Critics’ Challenge
Reliability of the GDP figure
Government and BJP Defense
Piyush Goyal said the 7.8% figure was being unfairly challenged because critics were comparing different data series and ignoring the changed base year.
Congress and Critics’ Challenge
Raghuram Rajan questioned whether the numbers were real, while Subhash Chandra Garg said the reported growth overstated the economy’s performance.
Effect of data revisions
Government and BJP Defense
The government’s position, as presented by Goyal, is that the updated series should be compared with the updated series rather than with older figures.
Congress and Critics’ Challenge
Garg argued that the retrospective reduction of Q1 FY2025-26 nominal GDP changed the comparison and produced the reported 7.8% result; he calculated 2.6% using the older figure.
Condition of the wider economy
Government and BJP Defense
Government leaders described the growth as evidence of resilience, and Prime Minister Narendra Modi called it a “herculean feat.”
Congress and Critics’ Challenge
Congress said the figure did not reflect depressed investment sentiment or job creation and described it as a distorted picture rather than an economic spring.
- Reported GDP growth
- 7.8% in the April-June 2026 quarter
- Data release
- Official figures were released on 31 August
- Garg’s alternative calculation
- 2.6% growth if last year’s original GDP figure had not been revised
- Revised previous GDP figure
- Q1 FY2025-26 nominal GDP was revised from about ₹86.05 trillion to ₹80.00 trillion
- Latest nominal GDP figure cited
- Q1 FY2026-27 nominal GDP was cited as ₹88.27 trillion
- Government’s explanation
- Piyush Goyal said critics were comparing an old series with a new series whose base year had changed