New Delhi – MOSPI Secretary Saurabh Garg has defended India's robust 7.8% Gross Domestic Product (GDP) growth for the first quarter of fiscal year 2027 (April-June 2026), assuring that all data sources underpinning these estimates are in the public domain. Garg's remarks came amidst scrutiny following the official GDP figures released on August 31, which showed significant economic expansion despite global uncertainties.
Addressing reporters on Wednesday, Garg emphasized the resilience of the Indian economy, noting that several sub-sectors performed better than initially anticipated. He pointed out that the services sector, now accounting for over 55% of the economy, recorded growth rates as high as 24% in certain segments. Key contributors included real estate, wholesale and retail trade, and tourism.
Strong Performance Across Key Sectors
Beyond services, the manufacturing sector also displayed considerable strength. Industries such as automobiles, two-wheelers, and three-wheelers registered significant growth, indicating broad-based recovery and expansion. Agriculture, a critical component of the Indian economy, also surpassed expectations with a 3.6% growth rate during the first quarter.
"Services is now more than 55% of the economy, and the kind of growth rate we have seen in certain service sectors is even up till 24%," MOSPI Secretary Saurabh Garg stated, highlighting the sector's significant contribution.
Garg acknowledged that while some revisions to the Q1 GDP estimates are expected, these would not be substantial. He clarified that quarterly figures are often based on indicators, whereas annual numbers rely on actual output details, leading to minor adjustments.
GDP Revisions and International Benchmarks
The Ministry of Statistics and Programme Implementation (MOSPI) had previously released the National Accounts Statistics – 2026, which revised upwards the GDP growth rates for earlier fiscal years. Growth for FY26 was revised to 7.8% from 7.7%, for FY25 to 7.2% from 7.1%, and for FY24 to 7.3% from 7.2%. These revisions, Garg explained, are a normal part of economic data compilation and are well within international ranges observed in base revision exercises across approximately 60 countries.
To provide further clarity, MOSPI also published a paper detailing the Q1 GDP data, addressing questions regarding revisions to the GDP series, price deflators, and sector-wise estimates. Looking ahead, Garg announced that the ministry plans to release the back series of GDP estimates for the updated base year by the end of the current year, offering a more comprehensive historical perspective on India's economic performance.