New Delhi, September 3, 2026: India’s unexpectedly strong economic growth has triggered a debate among economists and former officials, with questions being raised over whether the latest expansion figure accurately reflects the strength of the economy.

India’s economy grew 7.8% year-on-year in the April-June quarter of 2026, exceeding the 7.1% growth forecast in a Reuters poll. The performance was supported by strong manufacturing, investment activity and consumer demand.

Former Finance Ministry bureaucrat Subhash Chandra Garg questioned the figures, arguing that revisions to the previous year’s GDP estimates may have made the latest growth rate appear stronger.

Former Reserve Bank of India Governor Raghuram Rajan also raised questions over why such strong GDP growth has not been accompanied by similarly strong improvements in employment, domestic investment and foreign portfolio inflows.

Another point of debate is the GDP deflator, which stood at around 2.3% during April-June, significantly below retail and wholesale inflation measures. Critics say this could have implications for the calculation of real GDP growth.

Government Defends GDP Numbers

The Ministry of Statistics and Programme Implementation (MoSPI) has rejected suggestions that the data was manipulated. Officials said the latest figures are based on a new GDP series with 2022-23 as the base year, incorporating updated data sources and methodological improvements.

The government argued that comparisons between the old and new GDP series are not appropriate because the methodology, data sources and coverage have changed. Officials maintained that the 7.8% growth estimate is supported by several indicators of economic activity.

The debate is therefore not only about the headline growth rate but also about the transparency of India’s revised statistical methodology and whether strong GDP growth is translating into better jobs, investment and household incomes.