India's economic growth figure of 7.8% for the June quarter has come under fire after Subhash Chandra Garg, a former finance secretary, claimed that the previous year's GDP was artificially reduced by 6 trillion rupees ($63.5 billion) to make the current quarter's performance appear stronger.
This assertion raises concerns about the integrity of India's economic data, especially as major economies like the U.S., China, and Japan experience slower growth. India's chief economic advisor, V Anantha Nageshwaran, defended the GDP figures, attributing the changes to a new base year and revised methodology, suggesting that some data may be adjusted up or down.
However, Garg and political opponents argue that the government has not adequately explained the discrepancies, with the Indian National Congress party claiming that GDP revisions over the past four years total 43 lakh crore ($455 billion). The International Monetary Fund previously expressed concerns about the accuracy of India's economic data, assigning it a low grade.
Experts are divided; while some believe Garg's claims are technically flawed, others acknowledge potential estimation errors in past data.
Despite the controversy, analysts from Standard Chartered Bank and other firms suggest that the growth figures reflect real economic activity, driven by increased investments and exports, although they caution that sustainability remains a concern amid global economic challenges