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World Bank ED rejects 2.6% alternate GDP claim
The Hindu BusinessLine··3 Sept
World Bank ED Neelkanth Mishra rejected claims India grew 2.6 percent in the June quarter, not 7.8 percent, as ill-educated and egregiously wrong. S.C. Garg tied the dispute to a base cut from Rs 86 lakh crore to Rs 80 lakh crore. Mishra said the February 2026 series cleaned the data. He cited 35 percent August growth in vehicle dispatches.
Prism
What It Means For You
- Mishra said consensus trend-growth estimates could move to 7 percent-plus on the upside surprise.
- With neutral fiscal and monetary policy, he said the economy can still register 7.5 percent growth.
- He pointed to two-wheeler growth above 20 percent and commercial vehicle dispatches up more than 40 percent.
What's Happening
- Mishra posted on X after Garg contested the official 7.8 percent June-quarter print.
- He said the downward base revision was known in March to people who track the series.
- He argued easy-to-track activity indicators have been robust even as the alternate 2.6 percent claim spread.
The Indicators He Cited
- Personal vehicle dispatches grew 35 percent year on year in August despite 9 percent export growth, he said.
- Tax collection growth and credit growth have picked up, Mishra added.
- He still flagged weak real-wage growth as slack that may take several quarters of above-trend growth to tighten.
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