India Defends 7.8% Q1 GDP Growth Amid Data Revision Dispute

India's Ministry of Statistics and Programme Implementation has defended the country's latest GDP growth estimate of 7.8% for the first quarter of the 2026-27 fiscal year, dismissing criticism that recent data revisions artificially inflated the figure. The controversy centers on a downward revision of the previous year's first-quarter GDP estimate, which critics argue created a lower base for comparison. Statistics Secretary Saurabh Garg stated that the 7.8% real growth figure is corroborated by strong performance in real-economy indicators. He cited expansionary manufacturing and services PMI readings, along with approximately 9% growth in electricity consumption and 8% growth in cement and steel production. Garg also noted that several services segments, including hotels, tourism, and retail trade, were growing in the 15-20% range, while private consumption expenditure grew nearly 8%. The dispute was triggered by former Finance Secretary Subhash Chandra Garg, who questioned the scale of revisions in the new national accounts series. He pointed out that the nominal GDP for Q1 FY26 was originally estimated at ₹86.05 lakh crore under the old 2011-12 base year.