FX.co ★ India’s GDP grows 7.8% in April-June quarter, topping central bank forecast

Saurabh Garg, India’s statistics secretary, defended the government’s assessment that the economy expanded by 7.8% year‑on‑year in the April-June quarter, dismissing accusations that the figures were biased or artificially inflated. The reported pace exceeded economists’ consensus and the Reserve Bank of India’s 7% guidepost. It also accelerated from the year‑ago rate of 6.9%. However, growth softened compared to the prior quarter (January–March), whose figure was revised up from 7.8% to 8.6%.

The government moved to clarify the numbers after criticism from former Finance and Economic Affairs Secretary Subhash Chandra Garg and the Indian National Congress, an opposition party, whose General Secretary Jairam Ramesh called the calculations “statistical gymnastics.” Critics argued that downward revisions to past periods had improved the comparison base and created the appearance of stronger growth.

The statistics ministry rejected any political motive behind the revisions. Garg said the changes reflect methodological upgrades. A switch to a new GDP series anchored to the 2022/23 base year, replacement of outdated wholesale‑price measures with a producer price index (PPI), and the incorporation of more granular price indicators and additional data sources.