Congress seeks answers on ₹43 lakh crore GDP revision
Congress asks four questions on GDP revision methodology, citing a ₹43 lakh crore downward change in estimates.
The Congress party has demanded that the central government explain the methodology behind a significant downward revision in India's GDP estimates. In a statement issued on Thursday, the party raised four specific questions about changes to national accounts data for the period since 2022-23.
Congress general secretary Jairam Ramesh pointed to a cumulative reduction of ₹43 lakh crore in the estimated size of the economy over the last four years. He asked why estimates for each year in this period were revised downwards, what components of the new methodology drove these changes, and who was consulted in its formulation.
A key concern raised was the GDP deflator, which the party claims understates inflation. Mr. Ramesh noted the deflator stood at 2.5% for the April-June 2026 quarter, compared to retail inflation of 3.9% and wholesale inflation of 9.4%. He argued this gap inflates real growth figures.
Citing calculations attributed to former Finance Secretary Subhash Chandra Garg, Mr. Ramesh said nominal growth in the latest quarter would be closer to 2.6% rather than the reported 10.3% if the earlier base had not been revised. He also flagged concerns about manufacturing and private consumption, citing figures suggesting contractions in both areas.
The statement referenced past concerns raised by former Chief Economic Adviser Arvind Subramanian and the IMF regarding India's national accounts. The party has called for greater transparency on the methodology used to calculate GDP estimates.