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Rising prices and the RBI rate hike

India's economy grows 7.8% in April-June; Modi hails it, Congress questions the numbers

31 Aug 2026 · 4 outlets · 1 min read

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In 30 seconds
  1. Real GDP was ₹81.36 lakh crore in April-June 2026, up 7.8% from ₹75.46 lakh crore.
  2. The data use a new GDP series with 2022-23 as the base year, which revised past years.
  3. Congress says the revisions shrink last year's base and flatter growth; the government denies it.

The Ministry of Statistics (MoSPI) said on 31 August 2026 that real GDP, which strips out inflation, grew 7.8% in April-June 2026, up from 6.9% a year earlier and above the RBI's 7% estimate. Nominal GDP, which includes price rises, grew 10.3%. Prime Minister Narendra Modi called it a 'herculean feat'. Congress's Jairam Ramesh called it a 'Greatly Distorted Picture' and later alleged that revisions to last year's data inflated growth. The government said on 2 September the revisions came from a new GDP series and better data.

What it means for India

Strong growth gave the RBI room to raise interest rates in October without fearing a sharp slowdown. Congress argues growth is not showing up in wages, savings or jobs.

Checked

Claim by claim

✓Verified

Real GDP grew 7.8% in April-June 2026.

Said by MoSPI

This is the official first estimate in MoSPI's press note; quarterly estimates are usually revised later.

PIB
⇄Disputed

Real GDP growth is around 2.6%, not 7.8%.

Said by Jairam Ramesh, Congress, citing former Finance Secretary Subhash Chandra Garg

The Hindu reports Garg's estimate referred to growth at current prices without last year's revision, while Ramesh described it as real growth. MoSPI called Garg's claim 'unfortunate' and said the gap reflects a new series and better data.

The Hindu · Mint
⇄Disputed

Last year's April-June GDP was revised down to make this year's growth look bigger.

Said by Jairam Ramesh, Congress

MoSPI's note puts April-June 2025 nominal GDP at ₹80.00 lakh crore. The government said on 2 September the difference from earlier figures came from the series change and successive revisions, not intent.

PIB · Mint
In their own words

What each side says

Government and BJP

Modi called the growth a 'herculean feat'. Commerce Minister Piyush Goyal said critics did not know how to 'compare apples with apples', and the government said the revisions to past years came from a new series and better data.

The Indian Express · Mint
Congress

Jairam Ramesh said the data hide 'decidedly depressed' private investment, weak consumer confidence and rising prices, and called the methods 'statistical gymnastics'. He asked why GDP for the past four years was revised down by a combined ₹43 lakh crore. Party president Mallikarjun Kharge called Modi's video a 'PR exercise'.

The Indian Express · The Hindu · Mint
As it unfolded

Step by step

  1. MoSPI releases April-June GDP estimates.

  2. Government rejects the claim that last year's GDP was cut to flatter growth.

Honest gaps

Not yet known

  • ?How the new series' price measure (the deflator) compares with wholesale inflation of over 9%.
Who reported this

Sources

Left-leaning · 2Centre · 1Official record · 1

4 outlets across the spectrum. Leanings are a rough guide to who reported it, not a verdict on accuracy.

  1. PIBReal GDP during Q1 of FY 2026-27 has observed a growth rate of 7.8%
  2. The Indian ExpressPM Narendra Modi calls 7.8% GDP growth 'herculean feat'; Congress takes 'Greatly Distorted Picture' dig
  3. The HinduCongress cites former Finance Secretary's analysis, questions 7.8% GDP growth
  4. Mint7.8% or 2.6%? Modi Govt vs Subhash Chandra Garg on India's GDP Q1 numbers - Who said what
  5. MintCong again questions India's 'chest-thumping' 7.8% GDP growth, demands answers on ₹43 lakh crore revision

Spasht writes original summaries. Follow the links to read each outlet's own report. Revision 1.