World Bank Executive Director Neelkanth Mishra has termed the claims that India’s economy grew by 2.6% in the first quarter of the current fiscal year, as against 7.8% as “ill-educated” and “egregiously wrong”.

Mr. Mishra’s statement on X came amid a political row over the growth figures released by the government, which were contested by former Finance Secretary, S. C. Garg.

“… I was shocked to see the ill-educated and egregiously wrong claims made by some that if the ‘original’ base of June-2025 quarter was used, growth in the June-2026 quarter would be much lower,” Mr. Mishra said.

Mr. Garg claimed that the current price GDP last year was ₹86 lakh crore, which was revised down to ₹80 lakh crore, and that had that not been done, the GDP growth would have been only 2.6%.

“As expected, with the fiscal headwinds fading and monetary headwinds [falling credit growth till 1HFY26] becoming tailwinds [credit growth accelerating], GDP growth is surprising on the upside, and should help push up consensus trend-growth estimates to 7 per cent-plus. That is, with a neutral fiscal and monetary policy, the economy should still register 7.5% growth,” Mr. Mishra said.

He said the new series introduced in Feb-2026 cleaned up the data and also significantly improved the methodology.

“For those who track this for a living [and I used to be one such till 45 days ago] — the downward revision in the base was known in March… the new series increased credibility of estimates of real output,” Mr. Mishra said.

“That claim is so obviously wrong that several logical rebuttals have already been made. But bad information tends to travel further than good information, and so it is important to reiterate and reinforce the argument,” said Mr. Mishra, who till recently was the Chief Economist of Axis Bank.

“That such claims got traction is itself surprising, given that easy-to-track and not-possible-to-fudge indicators of economic activity have been so robust,” he said, without naming Mr. Garg.

Mr. Mishra said the June-quarter data was strong and momentum has picked up.

He said personal vehicle (cars, SUVs) dispatches grew 35 per cent YoY in August despite just 9% growth in exports.

Even two-wheeler growth is now more than 20% and commercial vehicle dispatches grew more than 40%.

Mr. Mishra said tax collection growth has picked up meaningfully and credit growth continued to surprise on the upside, albeit on a low base.

“Last year most believed the then-weak credit growth was a demand problem, whereas we steadfastly stated it was a supply issue – it has for now been addressed,” he said, adding that the indicators of construction are robust.

“Hopefully, now there will be fewer people asking ‘why private sector investment is weak’, given that there is clear evidence of investments,” he said.

Mr. Mishra said there is still slack in the economy, as seen in weak real-wage growth and it may take several quarters of above-trend growth for that to tighten, and bring back sticky inflation pressures.

World Bank Executive Director Neelkanth Mishra has termed the claims that India’s economy grew by 2.6% in the first quarter of the current fiscal year, as against 7.8% as “ill-educated” and “egregiously wrong”.

Mr. Mishra’s statement on X came amid a political row over the growth figures released by the government, which were contested by former Finance Secretary, S. C. Garg.

“… I was shocked to see the ill-educated and egregiously wrong claims made by some that if the ‘original’ base of June-2025 quarter was used, growth in the June-2026 quarter would be much lower,” Mr. Mishra said.

Mr. Garg claimed that the current price GDP last year was ₹86 lakh crore, which was revised down to ₹80 lakh crore, and that had that not been done, the GDP growth would have been only 2.6%.

“As expected, with the fiscal headwinds fading and monetary headwinds [falling credit growth till 1HFY26] becoming tailwinds [credit growth accelerating], GDP growth is surprising on the upside, and should help push up consensus trend-growth estimates to 7 per cent-plus. That is, with a neutral fiscal and monetary policy, the economy should still register 7.5% growth,” Mr. Mishra said.

He said the new series introduced in Feb-2026 cleaned up the data and also significantly improved the methodology.

“For those who track this for a living [and I used to be one such till 45 days ago] — the downward revision in the base was known in March… the new series increased credibility of estimates of real output,” Mr. Mishra said.

“That claim is so obviously wrong that several logical rebuttals have already been made. But bad information tends to travel further than good information, and so it is important to reiterate and reinforce the argument,” said Mr. Mishra, who till recently was the Chief Economist of Axis Bank.

“That such claims got traction is itself surprising, given that easy-to-track and not-possible-to-fudge indicators of economic activity have been so robust,” he said, without naming Mr. Garg.

Mr. Mishra said the June-quarter data was strong and momentum has picked up.

He said personal vehicle (cars, SUVs) dispatches grew 35 per cent YoY in August despite just 9% growth in exports.

Even two-wheeler growth is now more than 20% and commercial vehicle dispatches grew more than 40%.

Mr. Mishra said tax collection growth has picked up meaningfully and credit growth continued to surprise on the upside, albeit on a low base.

“Last year most believed the then-weak credit growth was a demand problem, whereas we steadfastly stated it was a supply issue – it has for now been addressed,” he said, adding that the indicators of construction are robust.

“Hopefully, now there will be fewer people asking ‘why private sector investment is weak’, given that there is clear evidence of investments,” he said.

Mr. Mishra said there is still slack in the economy, as seen in weak real-wage growth and it may take several quarters of above-trend growth for that to tighten, and bring back sticky inflation pressures.

Prime Minister Narendra Modi congratulated the people on India’s 7.8% GDP growth in the April-June quarter, crediting the nation’s resolve and efforts for the achievement. He also requested people not to buy gold and to shun foreign holidays and weddings to preserve foreign exchange reserves.

“Since the 2020 COVID pandemic, there has been no stability anywhere, but India has progressed well,” said PM Modi in an Instagram post.

He said that the country achieved this milestone despite wars and conflicts across the globe. “We have to maintain the speed of our growth, and for that, we must become self-reliant,” PM Modi said. He credited the growth to the country’s policies, intentions and people’s strength.

“Certain people in India have been trying to spread negativity, falsehood,” he accused. “But we progressed well despite all that.”

He asked people to be ‘vocal for local’ by shunning foreign holidays and weddings. “Unless necessary, do not buy gold,” he said.

“If we continue to stress on Swadeshi, self-reliance, we will present our youth with a developed India in the 100th year of Independence,” the Prime Minister said. “Our hard work will fulfil the youth’s dreams; let’s not hold back.”

The growth in India’s Gross Domestic Product (GDP) stood at 7.8% in the April-June 2026 quarter (Q1 FY27), quicker than the 6.9% recorded in Q1 of last year, but slower than the 8.6% of the January-March 2026 quarter.

Mr. Modi in May 2026, issued a seven-point austerity appeal to citizens to conserve foreign exchange and protect the economy amid energy and oil crises caused by the West Asia conflict.

As conflicts and geopolitical uncertainties around tariffs cloud domestic growth, a key parliamentary committee has decided to examine the evolving economic condition of the country.

According to a Lok Sabha bulletin, the Standing Committee on Finance has chosen ‘Evolving Economic Conditions in the Country’ as an additional subject for detailed examination during the year 2025-26.

Parliamentary panels select their subjects soon after they are constituted. But they are at liberty to select additional subjects, keeping in mind evolving circumstances.

Indian economy is estimated to have grown at 7.7% in 2025-26 (April-March), with a robust 7.8% growth in the January-March quarter.

India’s GDP had grown at 7.1% in the 2024-25 fiscal year.

However, the RBI estimates GDP growth to slow to 6.6% in the current fiscal year as the ongoing conflict in West Asia pushes up cost of fertiliser and fuel globally. India is a net importer of both crude oil and fertiliser.

The committee is likely to seek input from the finance ministry, the Reserve Bank of India (RBI), economists, and other stakeholders before finalising its report containing its observations and recommendations.

The examination is expected to cover topics, including economic growth, inflation, employment, investment trends, fiscal management, banking sector developments, trade and the impact of global developments on India.

The committee’s study assumes significance at a time when India is navigating challenges arising from geopolitical tensions, supply chain disruptions, trade uncertainties and fluctuations in commodity prices, while seeking to sustain high economic growth.

For the 2026-27 period, the Standing Committee on Finance, chaired by Bhartruhari Mahtani, has chosen subjects spanning across ministries, including Finance, Corporate Affairs, Planning (NITI Aayog), and Statistics.

“India’s Gross Domestic Product (GDP) is likely to grow at 6.6% in the current fiscal as compared to 7.7% in FY26, on weaker investments and consumption growth and trade shocks from the West Asia crisis,” Business Monitor International (BMI), a Fitch group company, said.

According to government data released last week, GDP growth in FY26 accelerated to 7.7% from 7.1% in FY25, supported by healthy consumption and robust investment activity.

BMI expects the Rupee to trade in the range of 95.1 against the U.S. dollar this calendar year. It said the Rupee’s depreciation from its 87 average level in 2025 will support export competitiveness, offsetting the drag on GDP from the Iran conflict’s terms-of-trade shock.

The Goods and Services Tax (GST) reforms implemented in September 2025 caused a consumption boom in December quarter FY26. Thereafter, consumption growth fell by 1.1% points to 7.1% year-over-year in March quarter FY26.

“Looking ahead, we continue to expect 6.6% GDP growth in FY2026/27. Our projection represents a visible slowdown from FY2025-26’s 7.7% pace but exceeds India’s average 6.1% per annum growth rate over the last decade,” it said. BMI’s projection is in line with RBI’s 6.6% growth estimates for FY27.

BMI attributed the slow growth rate this fiscal to three factors. First, the impact of last year’s GST reforms on domestic consumption is likely to wane. Also, higher price inflation which BMI expects to hit 5.3% in FY27 will hinder consumption growth amid disruption at Strait of Hormuz.

Thirdly, BMI expects investment growth to slow during the fiscal year. “This slowdown is not due to our new forecast of accumulative 50 basis points (bps) rate hike by the RBI in FY2026/27, since the effect on growth will primarily be felt during FY2027/28.”

BMI said the currently low level of short-term interest rates following the RBI’s 125 bps rate cut during 2025 will support the economy through the ongoing energy crisis.

Commerce and Industry Minister Piyush Goyal on Saturday (November 29, 2025) said a host of steps and reforms undertaken by the government to improve ease of doing business have helped the economy post an 8.2% growth in the July-September quarter of the current fiscal.

He said the country’s exports too are registering healthy growth despite global uncertainties at the trade front.

“The 8.2% growth reflects the host of reform measures taken by the government. Number of measures have been taken to boost domestic manufacturing and promote ease of doing business,” he said here while participating in a national padyatra in Vadodara, organised as part of the 150th birth anniversary celebrations of Sardar Vallabhbhai Patel.

The Gujarat government is organising this ‘padyatra’ (foot march) from Karamsad to the Statue of Unity in the Narmada district of the State to commemorate the birth anniversary.

He added that the growth numbers have refuted claims made by certain quarters, and it showed that India is the world’s fastest-growing major economy.

“We will continue to see relentless growth,” Mr. Goyal said, adding India’s merchandise and services exports too have recorded high growth during April-October this fiscal.

During April-October this fiscal, merchandise exports increased marginally by 0.63% to $254.25 billion, and imports rose 6.37% to $451.08 billion.

During the first nine months of this financial year, services exports stood at $237.55 billion, compared to $216.45 billion in April-October 2024.

The 8.2% gross domestic product (GDP) growth, which follows a 7.8% expansion in the preceding April-June quarter, helped India retain the title of the world’s fastest growing major economy, according to official data.

The GDP growth came ahead of the festive season consumption boost on the back of the implementation of a significant reduction in the goods and services tax (GST).

The expansion, which was more than China’s 4.8%, was driven by higher public investments, services demand, industrial output and firm consumption, besides statistical effects of a low base (the economy grew at a below-average 5.6% in the same quarter last fiscal).

Manufacturing output rose 9.1% against a growth of 7.7% in the preceding quarter and 7.6% in the year-ago period, while construction expanded 7.2% from 7.6% in the previous quarter.

India’s economic growth rate in the first quarter (April-June) of the current financial year quickened to a five-quarter high of 7.8%, driven by a cross-sector acceleration including in manufacturing, construction and services. 

Growth in the Gross Domestic Product, as shown by the data released by the Ministry of Statistics and Programme Implementation on Friday (August 29, 2025), was last quicker during the quarter ended March 2024. 

Growth in the manufacturing sector quickened to 7.7% in the April-June 2025 quarter, coming on top of a high base of 7.6% in the same quarter of the previous year. This was also faster than the 4.8% growth the sector saw in the January-March 2025 quarter.

The construction sector, too, saw growth coming in at 7.6% in Q1 of this financial year, on a high base of 10.1% in Q1 of last year. The electricity, gas, water supply & other utility services sector, however, saw growth slow sharply to 0.5% in Q1 of this financial year, from 10.2% in the same quarter of the previous year.

The quarter’s GDP growth was also propelled by the services sector, which on a combined basis grew 9.3% in the April-June 2025 quarter, faster than the 6.8% seen in the same quarter of last year, or the 7.3% growth in the immediately preceding quarter. 

Within this, the Public Administration, Defence & Other Services sector saw the growth accelerating to a three-year high of 9.8% in Q1 of 2025-26, coming on top of a 9% growth in Q1 of the previous year. 

The Financial, Real Estate & Professional Services sector grew at 9.5% in Q1 of 2025-26, a two-year high. Similarly, the Trade, Hotels, Transport, and Communication Services sector grew at 8.6%, also a two-year high.