India defends revised GDP estimates, cites improved data methodology

The Ministry of Statistics and Programme Implementation on Wednesday addressed mounting questions about the methodology underpinning its revised economic growth estimates, released earlier this week. The ministry said the recalibrated figures, which incorporate 2022-23 as the new base year and introduce a fresh Producer Price Index and Banking Services Price Index, represent a more accurate reflection of India's economic activity based on updated information and improved estimation techniques.

The government's clarification targeted specific concerns raised by analysts regarding the new GDP series, including negative implicit price deflators in the manufacturing sector, divergence between nominal and real growth figures in mining, and sizeable statistical discrepancies between production-based and expenditure-based estimates. Officials emphasized that such variations are methodologically sound and stem from incorporating additional administrative data sources rather than any attempt to artificially boost growth metrics.

According to the revised GDP series, India's economy expanded at 7.8 per cent in real terms during the first quarter of fiscal 2026-27, maintaining the country's position as one of the world's faster-growing major economies. The updated estimates incorporate more comprehensive data collection mechanisms and refined price indices, which the ministry said provide a more granular understanding of sectoral economic performance across the country's diverse economy.