Sunday, September 06, 2026

Still in sixth.

India's Real GDP, or GDP at Constant prices, grew at 7.8% to Rs 81.36 trillion in the first quarter (April-June) of FY 2026-27. Nominal GDP, or GDP at Current Prices, grew at 10.3% to Rs 88.27 trillion. pib. gov.in. Former Finance Secretary, Subhash Garg, said that this is because the government reduced last year's first-quarter GDP from Rs 86 trillion to Rs 80 trillion, which has raised the year-on-year rate of growth. He said the production at current prices remains fixed. So, where did Rs 6 trillion go? he asked. The Federal. "Govt strongly defended the sanctity of GDP data," saying "the revision was consistent with the new methodology. The base year has changed, the use of producer price index provides more granular information, and more data is available." TOI. "The base year is revised periodically to reflect structural shifts in the economy," to account for "expansion of renewable energy and digital services, alongside changes in consumption pattern and investment behavior." pib.gov.in. "On price adjustments, the government's April-June deflator was 2.3%, significantly less than retail inflation of more than 4% and wholesale inflation over 9%." Prof Raghuram Rajan asked "why the robust GDP growth figure is not showing up in stronger results for job creation, domestic investment and foreign portfolio inflows." Reuters. This government is not trusted because of what transpired right at the beginning, in 2015. "Immediately after the GDP series was released in early 2015 (with 2011-12 as its base year), economists and policymakers began questioning the accuracy of the numbers, as it seemed to contradict other economic indicators." "Around this time, the Niti Aayog got involved in reviewing the GDP methodology and in the preparation of a back-cast series." Niti Aayog "corrected" (decreased) the growth rate of the previous regime, wrote Pramit Bhattacharya. In 2019, "The only two non-government members of the National Statistical Commission, including its acting chief, have quit over 'disagreements' with the government on the release of jobs data and concerns about it being buried in election season." NDTV. JP Morgan chief economist Sajjid Chinoy said that the high rate of growth is because of an enormous fiscal stimulus. Direct tax rates were reduced in February last year, consumption taxes were cut in September and interest rates have come down by 1.5% over the last year. Exports have jumped 12% despite tariffs as the rupee has fallen by 15% against the dollar and global demand has been strong. BBC. "The UK has seen years of slow growth, although the economy expanded by 1.2% in the first six months of this year, according to official figures." BBC. The GDP of the UK was $4002.588 billion in 2025 while that of India was $3956.067 billion in 2025, according to the World Bank. If India's GDP has grown 7.8%, it should now be $4264.653 billion while a 1.2% growth should take the UK economy to $4050.63 billion. India should rise above the UK to fifth in ranking. But the IMF projects the UK economy at $4264.794 billion and the Indian economy at $4153.191 billion in 2026. wikipedia. Which means the IMF is projecting a 5% growth of Real GDP in dollar terms. The festive season started with Janmashtami, the birth of Lord Krishna, on 4 September. (wikipedia). Prices of sugar and onions have more than doubled. India Today. A valuable source of protein, "Egg prices have risen sharply across India over the past year," as "more maize is diverted to ethanol production, poultry farmers are having to compete for the same crop. Feed accounts for more than 70% of the cost of producing an egg." HT. Sugar cane is also a source of ethanol. Instead of this asinine celebration of some dubious statistical growth, the government should concentrate on policies that are good for the people. Not on single or double deflator. India is still in sixth position. That's real.    

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