Former Reserve Bank of India governor Raghuram Rajan clarified that he has not questioned India’s GDP numbers but expressed concern about their reflection in real life. He said strong growth should normally bring higher private investment, foreign direct investment and job creation, yet these remain weak. His remarks followed India’s report of 7.8% GDP growth in Q1 FY27.
The debate grew after a base year revision lowered nominal GDP for April to June 2025 from ₹86.05 trillion to ₹80 trillion. Critics argued this inflated growth figures. Some economists also said the deflator may have understated inflation, overstating real growth.
The Ministry of Statistics defended its methodology, saying the revision was based on wide consultations and aimed at improving accuracy. Officials insisted the new series better reflects current conditions. World Bank’s Neelkanth Mishra supported the government, dismissing claims against the 7.8% figure as misleading and noting that comparing old and new bases is incorrect.
Rajan’s central point is that headline growth must translate into real benefits. Without stronger investment, FDI inflows and job creation, GDP numbers alone cannot show the true health of the economy. His comments highlight the gap between statistical growth and lived economic reality.
