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MoSPI defends 7.8% April-June GDP growth data
The Indian Express··2 Sept
MoSPI defended Monday's release that India's GDP grew 7.8 percent in April-June, above the Reserve Bank's 7 percent forecast. It said April-June 2025 nominal GDP moved from Rs 86.05 lakh crore on the old series to Rs 80.00 lakh crore after the 2022-23 base-year shift, not a deliberate cut. Nominal GDP is Rs 88.27 lakh crore, up 10.3 percent.
Prism
What It Means For You
- Comparing GDP levels across different base-year series is invalid for computing growth, MoSPI said.
- Former finance secretary Subhash Chandra Garg argued real growth was close to zero if his reading held.
- Congress quoted Garg in saying 7.8 percent growth was fudged against a 2.6 percent reality.
What's Happening
- Monday's release also revised January-March growth from 7.8 percent to 8.6 percent.
- Revisions used the new producer price index, updated IIP and the Banking Services Price Index.
- MoSPI issued a six-point rebuttal on Wednesday without naming Garg.
Why the Series Changed
- The new GDP series with 2022-23 as base year arrived in February.
- Under that series, April-June 2025 nominal GDP was first Rs 80.32 lakh crore, then Rs 80.44 lakh crore, then Rs 80.00 lakh crore with updated IIP.
- CPI and IIP series were also updated this year.
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