Congress Challenges India's 7.8 Percent GDP Growth Figures as Government Defends Methodology

The Indian government reported a 7.8 percent GDP growth for the first quarter of 2026-27, a figure that has sparked a dispute between the ruling administration and the opposition Congress party. Prime Minister Narendra Modi hailed the growth in a video message, stating that the figures punctured narratives of pessimism and demonstrated the success of government policies. In response, Congress President Mallikarjun Kharge dismissed the celebration as a PR exercise, arguing that ordinary citizens face unprecedented unemployment, rising prices, and unbridled inequality.

Congress communications chief Jairam Ramesh accused the government of using statistical gymnastics to mask economic weakness. He pointed to a discrepancy between the government's reported 2.3 percent gap between nominal and real GDP and a Wholesale Price Index inflation rate of over 9 percent. Ramesh alleged that the government changed its GDP calculation methodology twice this year, including moving away from the Wholesale Price Index, to manufacture higher growth numbers.

Prime Minister's Economic Adviser Sanjeev Sanyal defended the methodology in an interview with India Today. Sanyal explained that the GDP base year was revised from 2011-12 to 2022-23 in February because the pandemic years did not reflect normal economic conditions. He stated that no serious economist views the data as lacking credibility and noted that growth is reflected in other indicators such as car sales and corporate profitability.

Former Finance Secretary Subhash Chandra Garg expressed skepticism regarding the 7.8 percent figure. He claimed the government drastically revised the GDP at current prices for the first quarter of 2025-26, suggesting that if the previous numbers had been used, nominal GDP growth would be less than 2.5 percent.