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Subash Chandra Garg, unceremoniously sent packing for Finance Ministry, and since then perpetually disgruntled, has sprung to life to once again make a fool of himself.
Here are facts
Garg's entire argument rests on mixing up two different things. And not because of ignorance but due to malice.
Think of the base year GDP shift (2011-12 to 2022-23) and change in measurement techniques like switching from measuring land in yards to measuring it in metres and then Garg suddenly waking up and saying saying "the distance was 10 yards, now it's 9 metres, so it shrank." The distance didn't change, the ruler did.
LetтАЩs make this actually simple.
First, я┐╜я┐╜80 lakh crore ( Q1 FY 25-26) тЖТ тВ╣88.27 lakh crore ( Q1 FY 26-27) does NOT give you 7.8% growth.
It gives you roughly 10.3% NOMINAL GDP growth for Q1 FY 26-27.
The reported 7.8% is REAL GDP growth, calculated at constant prices:
тВ╣75.46 lakh crore тЖТ тВ╣81.36 lakh crore = 7.8%.
That alone should tell you how seriously wrong is his argument.
Now come to the тВ╣86 lakh crore figure.
Yes, Q1 FY 25-26 nominal GDP was earlier estimated at roughly тВ╣86 lakh crore.
But that was under the old 2011-12 GDP series.
India has since moved to the new 2022-23 series.
This base year shift involves using double deflation (recommended by UN) for manufacturing, (roughly 600 deflators instead of earlier only 180), Proportional Denton benchmarking, and new data sources like GST returns, e-Vahan registrations, ASUSE and PLFS surveys. MoSPI has increased the number of deflators from 180 to about 600 as part of this change.
Historical GDP numbers have consequently been recalculated.
Under this new series, Q1 FY 25-26 nominal GDP is around тВ╣80 lakh crore.
So doing:
тВ╣86 lakh crore nominal GDP FY 25-26 [OLD SERIES] тЖТ тВ╣88.27 lakh crore nominal GDP 26-27 [NEW SERIES] and announcing that India's growth is therefore only 2.6% is statistical nonsense.
You cannot take the denominator from one GDP series and the numerator from another.
If the allegation is that this exercise was done to artificially inflate growth, there is a rather inconvenient problem.
Look at what the SAME new series did to earlier growth estimates:
FY 23- 24: 9.2% тЖТ 7.2%
FY 24- 25: 6.5% тЖТ 7.1%
Q1 FY 25- 26: 7.8% тЖТ 6.7%
Q2 FY 25-26: 8.2% тЖТ 8.4%
Some revised UP. Some revised DOWN.
In fact, Q1 FY 25-26 growth itself was revised DOWN by 1.1 percentage points, while FY 23-24 was revised down by a massive 2 percentage points.
Quite an extraordinary way to "inflate" GDP growth!
The new series announcement isn't a trick invented for this one quarter either. The new method was announced and explained back in February 2026, months before this number came out and in fact weeks before this quarter even started.
This rebasing of base year is also not a first time trick invented by Modi government. It is done every few years in every economy and mandated by all world organisations.
And this is hardly unprecedented.
When India last changed its GDP base year from 2004-05 to 2011-12 in 2015, the numbers changed dramatically.
For FY 2013-14, growth that had been reported at around 4.7% under the old headline GDP-at-factor-cost measure became 6.9% for GDP at market prices under the new series.
Even those new-series estimates did not remain frozen.
Subsequent revisions changed the numbers again, with FY 2013-14 revised downward and FY 2012-13 revised upward as more complete data became available.
That is precisely the point.
Changing a GDP series is not simply replacing one base-year number with another. Data sources, coverage, methodology, classifications and deflators can change, and historical GDP estimates are reconstructed accordingly.
The resulting revisions can move growth rates both UP and DOWN.
*******************
As regards why Garg has crawled out now - it is hardly a choice. A Garg here comparing two different measures; A Rajan there slamming India for manufacturing chips.....all specimens will crawl out.....
After all, someone must look out for @RahulGandhi and his minions.
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