**World Bank Executive Director Neelkanth Mishra has strongly defended India's economic performance, citing high-frequency indicators that show 'strong economic momentum' despite skepticism over GDP data credibility. Speaking in a Bloomberg TV interview, Mishra pointed to vehicle sales, cement volumes and credit demand as evidence that 'are actually doing very well' in a 'lived reality' that differs from the 7.8% headline GDP growth for the April-June quarter. He explained that 'Many people are looking at that 7.8 number and saying this is not our lived reality. The fact that people don't feel that the economy is robust is because there is still slack in the economy'. Mishra warned against reading too much into any single quarterly GDP print, arguing that the broader trend remains strong.
**Garima Kapoor, Deputy Head of Research and Economist at Elara Capital, has strongly defended India's latest GDP growth figures, rejecting claims that the acceleration is merely a statistical upgrade. According to Kapoor's analysis, the 7.8% figure itself is a genuine year-on-year comparison within the new series, not an artifact. She emphasized that high-frequency indicators (IIP, credit growth, GST, exports, PMI) broadly corroborate solid activity, with corporate earnings showing strong performance as the coverage universe of more than 300 companies posted a PAT growth of 18%, exceeding expectation of 14% growth. Kapoor noted that the acceleration vs. last year's Q1 is real within consistent methodology, though she acknowledged that the absolute level of the economy is lower than previously estimated due to the new GDP series revisions.
The controversy centers on India's GDP base year revision from 2011-2012 to 2022-23 in February 2026, which led to significant changes in historical GDP data. As reported by The Times of India, under the old 2011-12 series, GDP was estimated at ₹86.05 lakh crore for Q1 FY26, while under the new 2022-23 series, it was initially estimated at ₹80.32 lakh crore, then revised to ₹80.44 lakh crore and subsequently to ₹80 lakh crore. SBI's Ghosh explains that the old ₹86.05 lakh crore figure cannot be directly compared with the latest Q1 FY27 estimate of ₹88.27 lakh crore because they belong to different GDP series. The government has rejected allegations that last year's GDP was reduced under the new series to make current year growth appear stronger, stating that revisions are due to a combination of factors including change in base year, improved methodologies, updated data sources and incorporation of newer indicators. Madan Sabnavis from Bank of Baroda notes that 'The new methodology of GDP and GVA computation is said to be more aligned to international practices', with economists arguing that 'the data cannot compare the old methodology based computation with the new methodology as there are several improvements made as per the new methodology aligning with global good practice'.
The Ministry of Statistics and Programme Implementation (MoSPI) has provided detailed clarification on the manufacturing sector's negative 1.5% implicit GVA deflator despite rising output and input prices. As reported by Business Standard, under the double-deflation method, output and intermediate consumption are deflated separately to arrive at real GVA. 'In Q1, 2026-27 manufacturing GVA is compiled using the double-deflation approach, under which output and intermediate consumption are separately deflated. During this period input prices increased faster relative to output prices. As a result, nominal GVA growth for this sector was relatively lower at 7.7 per cent, while real GVA growth was 9.2 per cent. The resulting difference between nominal and real GVA growth produced a negative implicit GVA deflator of 1.5 per cent,' MoSPI explained. The ministry cited textiles and cotton ginning, basic metals, and rubber and plastic products among activities where input-price growth exceeded output-price growth. Former acting chairman of the National Statistical Commission (NSC) P.C. Mohanan noted that 'a negative GVA deflator is likely to happen while using double deflation' and questioned the methodology clarity, while Madan Sabnavis from Bank of Baroda supported the clarification, citing corporate results showing companies absorbed higher input costs without passing them to consumers. Ranen Banerjee of PwC explains that 'We all are aware that there was a spike in input prices owing to the Middle East conflict. We are also aware that companies have been reluctant to pass on the entire cost increases to consumers and there has been only a partial pass on and that too mostly after the first quarter.'
Union Commerce and Industry Minister Piyush Goyal launched a sharp defence of India's 7.8% GDP growth for the April-June 2026 quarter, directly targeting critics who question the data's credibility. Speaking to reporters in Delhi, Goyal accused Opposition leaders and former officials of attempting to mislead people by comparing growth figures from different GDP series. 'Truth cannot be hidden... Ministers do not manufacture this data... When you have such a negative mindset, in a way, you are diminishing yourself. When you attempt to demotivate people by distorting the truth, you betray the people,' Goyal said. The minister emphasized that 'Record growth of 7.8% is something that no other country has been able to replicate. This is the capability, hard work, and joint effort of 140 crore people in the country,' adding that the performance had helped India emerge as a 'global trusted partner.' Prime Minister Narendra Modi described the growth as a major achievement, stating that India had delivered the result despite shocks to oil prices, supply chain disruptions and uncertainty in the world economy. Goyal credited PM Modi's leadership for the milestone, saying 'PM Modi has led the country with farsightedness.'
