NEW DELHI — World Bank Executive Director Neelkanth Mishra has rejected claims that India’s reported 7.8% economic growth in the April–June quarter was artificially boosted by changes to the national accounts series, arguing that high-frequency economic indicators support the strength of the expansion.
Mishra said the criticism of the Q1 FY27 gross domestic product (GDP) figure was misplaced and that India’s revised GDP series had improved, rather than weakened, the credibility of estimates of real output.
The debate emerged after questions were raised over whether a revised base and changes in methodology had made the latest growth rate appear stronger than it would have under earlier calculations. Mishra said the downward revision in the comparable base was known months earlier and should not be used to dismiss the latest reading.
India’s economy grew 7.8% year-on-year in the June quarter, exceeding many market expectations, although the pace was lower than the upwardly revised 8.6% recorded in the preceding quarter.
Mishra pointed to vehicle sales, tax revenues and credit demand as indicators that are broadly consistent with the official GDP data. These measures, he argued, are difficult to manipulate and offer a practical cross-check on the headline growth estimate.
The comments are significant for investors and businesses assessing whether India’s growth momentum is broad-based. Stronger credit expansion, resilient consumer demand and fading fiscal headwinds could help lift estimates of India’s underlying trend growth above 7%, Mishra said.
The revised GDP series, introduced earlier this year, seeks to better capture changes in India’s economic structure and improve measurement of real output. While methodological revisions can alter comparisons with earlier data, economists generally view periodic rebasing as essential to keeping national accounts aligned with current production and consumption patterns.
For companies, the 7.8% growth print reinforces a constructive demand backdrop across sectors linked to consumption, construction, mobility and financial services. However, businesses and policymakers will continue to watch employment, private investment and inflation trends to determine whether the momentum can be sustained through the financial year.
Mishra’s intervention adds weight to the government’s position that India’s growth performance reflects genuine economic activity rather than a statistical distortion, even as the debate over the revised data series continues.
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