Is the Government’s Growth Story Only Half-Told?

The useful part

DC Comment DC Editorial 5 Sept 2026 12:24 AM IST 5 Sept 2026 12:24 AM IST Debate over GDP revisions highlights the need for greater transparency x Former finance secretary Subhash Chandra Garg. (Image: X) As Preferred Source About five days ago, India was pleasantly surprised by the Central government's quarterly economic data, which pegged the country's economic growth at an enviable 7.6 per cent. The rate of economic expansion beat various growth forecasts, including that of the Reserve Bank of India (RBI), by a wide margin.

How it works

• They also argued that one cannot compare data calculated using an old base with numbers produced using a new base because they represent different sets of numbers and are, therefore, incomparable.
• Similarly, a manufactured growth narrative would not be good for the country because it would prevent timely interventions required to get the economy back on track.
• If the government wants to avoid speculation about the economy, it should be forthcoming in releasing data.
• The nation rejoiced until former finance secretary Subhash Chandra Garg raised doubts about the reliability of the growth figure following a downward revision of the economic activity recorded in the...
• If the government had not shortened the yardstick (GDP size in Q1 FY 2025-26), the data would have shown a growth rate of 2.6 per cent — approximately Rs 88.26 lakh crore in Q1 FY 2026-27 compared with Rs...

What to take from it

Irrespective of the battles over narratives in which political parties have been engaged, a manufactured doomsday scenario would not be good for the country because it would slow down the investment cycle. Though India had witnessed economic growth rates higher than 7.6 per cent, this number was exceptional in view of global economic and geopolitical uncertainty. His educational background, profile and lack of any connection with Opposition parties — his rise coincided with the emergence of the BJP as the pre-eminent power in New Delhi — lent credence to his words.

Example or evidence

• The government and many economists countered Mr Garg's argument by stating that revision of the base year is an accepted principle in statistics.
• The "2.6 per cent growth rate" could create a narrative against the government, especially in the wake of the jobless economic growth and premiumisation of the economy that the country has been witnessing...
• If the Ministry of statistics had calculated growth figures using both base years for the initial three years, it would have left no room for unwarranted speculation.
• Deccan Chronicle) central government economic growth subhash chandra garg gdp India About the Author DC Editorial Latest News Next Story X

Details worth keeping

DC Edit | Is Govt's Growth Story Only Half-Told?

Related coverage

• Deccanchronicle: Robust GDP growth masks uneven sectoral performance and highlights the need for more labour-intensive jobs.
• Theguardian: India's statistical system once commanded respect, and its data on economic and social indicators was considered rigorous – that appears to have eroded • Don't get This is India delivered to your inbox?
• Thehindubusinessline: Until the NSO publishes a transparent back-cast series and clarifies its deflator methodology, the headline 7.8% growth figure should be treated as indicative rather than definitive
• Indiatimes: One of the biggest points of discussion and questioning is the revision to Q1 FY26 GDP at current prices, that is the figures for last year's same quarter numbers.