Comment by Riaz Haq 12 hours ago

Former finance secretary Subhash Chandra Garg says there is a lot of distress among the wage earning class where incomes don't seem to have grown in real terms over the years. The other really sad development is 8 to 9 crore crore youth are out of the employment market. Therefore there is a new to investigate whether GDP is actually growing at the rate officially claimed.


https://youtu.be/ReWkJTEcQd4?is=1i5gdFSEk81oH5ih

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Subhash Chandra Garg
@Subhashgarg1960
I explain analytical base of my conclusion that GDP growth in Q1 in 2026-27 in current price is 2.6% and in real terms close to 0. There are still messier distortions in sectoral performance with manufacturing and consumption witnessing negative growth.

https://x.com/Subhashgarg1960/status/2095074164814258439?s=20

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@Manoj_216

Last year, Q1 2025-26:
Nominal GDP was ₹86 trillion (everyone celebrated)
It was then conveniently revised down to ₹80 trillion (almost a 7% downward revision) (after celebrations were over).

This quarter, Q1 2026-27:
Nominal GDP is ₹88.27 trillion rupees.
This may also get conveniently revised down later after the celebrations are over.

Compare unrevised (₹86 trillion) vs unrevised (₹88.27 trillion), we have grown only by 2.6%

Oops! too much of a number game going on !

https://x.com/manoj_216/status/2094990270337290344?s=46&t=Uy6jy...

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India's 20 years of GDP misestimation: New evidence

Abhishek Anand (Madras Institute of Development Studies), Josh Felman (JH Consulting) and Arvind Subramanian (PIIE)
Working Paper 26-3
March 2026
Photo Credit: REUTERS/Amit Dave


https://www.piie.com/publications/working-papers/2026/indias-20-yea...


KEY TAKEAWAYS

India’s annual economic growth during the boom years between 2005 and 2011 may have been underestimated by about 1–1½ percentage points on average, and subsequent growth between 2012 and 2023 may have been overestimated by about 1½-2 percentage points.
The first methodological issue leading to the misestimation is that the economy’s formal sector has been used as a proxy for the vast informal sector, even though the latter was disproportionately hit after 2015 by demonetization, the introduction of the goods and services tax, and the COVID-19 pandemic.
The second methodological issue causing misestimation is that the deflators for many sectors have been based on commodity prices, which have moved sharply relative to others.



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Ex-finance secretary raises concerns
Former Finance Secretary Subhash Chandra Garg told India Today that the real GDP data in the new series for the first quarter of the financial year 2025-’26 was not available as it had been released based on the old series at the time.

“So, the number which has now been used as a base for 2025-’26 Q1 is the number that [the government] has come out with for the first time,” he said. “Therefore, comparing it with that base should be taken with a little bit of a pinch of salt.”

Garg said that the GDP growth analysis is done in terms of current prices and that the government had “drastically revised” the gross domestic product at current prices for the first quarter of 2025-’26.

“It’s such a massive, drastic reduction in the base year’s Q1 GDP at current prices that the growth is now 10.3%,” he told the news channel. “If you had taken the numbers – and the current prices don’t change – which were put out last year as the GDP at current prices, the growth would be less than 2.5% in current prices – nominal GDP.”

https://scroll.in/latest/1095427/pms-economic-adviser-denies-allega...

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