Retired IAS officer Subhash Chandra Garg said the quarter’s 7.8 per cent growth rate looks strong on the surface, but there are several reasons to take a closer look at the figure.
Published: September 2, 2026, 10:29 PM IST
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Subhash Chandra GargFile image/PTI
India’s former Finance and Economic Affairs Secretary Subhash Chandra Garg is grabbing the spotlight for his statement on India’s Global Domestic Product (GDP)He stated that the country’s 7.8 per cent growth April-June quarter needs a closer scrutiny because the base used to calculate the growth has changed.
Speaking to Business Today, Garg pointed out that real GDP data for the first quarter of the previous year was released under the old series rather than the new oneHe said the figure being used as the base for Q1 of 2025-26, however, comes from the new series.
“I think this is a serious question which we should really examineThe growth 7.8 per cent in this quarter on the face of it looks very good,” Garg said.
Let us take a closer look at who is Subhash Chandra Garg.
Who is Subhash Chandra Garg?
Born in 1960, Subhash is a retired Indian Administrative Service (IAS) officer from the Rajasthan cadreHe served as Finance Secretary in 2019 after serving as Secretary of the Department of Economic Affairs (DEA).
Also Read | Modi govt refutes claim that Q1 GDP growth would be 2.6 per cent without data revision, here’s what it said
He was involved in major economic policy decisions, including matters relating to taxation, financial markets and government borrowing during his time as the DEA SecretaryNotably, his career also took him to the World Bank where he served represented India, Bangladesh, Bhutan and Sri Lanka.
He retired from government service in October 2019Following his retirement, he has written and spoken extensively on India’s economy, fiscal policy and public financeHe is best known for his book The $10 Trillion Dream, in which he discusses India’s economic growth ambitions and policy challenges.
Flags curent-price GDP revision
Garg also pointed to a significant revision in the current-price GDP estimate for Q1 of 2025-26According to him, the government’s revised figures now peg nominal GDP growth for the quarter at 10.3 per cent.
“If you had taken the numbers which were put out last year as the GDP at current prices, the growth is less than 2.5 per cent at current prices, nominal GDP,” he saidGarg said the difference is significant because the current price growth rate changes substantially depending on whether the revised base or the figure released last year is used.
Garg said the revision of the GDP base and the sharp change in current-price GDP have made him question the credibility of the 7.8 per cent growth figureHe said the two factors raised “a little bit of a doubt” about whether the growth rate genuinely reflects economic activity.
Speaking to India Today, Garg acknowledged that revisions are expected when a new GDP series is introducedHe said the new series could cover products and companies that were not included earlier, while some previously counted may no longer featureSuch changes can have an impact on the overall value of production.
