GDP data for Q1 FY26 was revised sharply downward, from ₹86.05 lakh crore to ₹80 lakh crore — a 7 per cent cut that has sparked a debate. Former Chief Statistician of India Pronab Sen explains what is behind the revision in an interview with businessline. Excerpts:
What is the problem with GDP calculation this time?
There can be many conventions of reporting growth. One can compare first estimate of this year divided by the first estimate of last year. Which is what Subhash (former Finance Secretary) is talking about. That’s the convention he says is the right convention. The other convention is that whatever estimate you have of this year you compare over the latest estimate of last year because that’s the more accurate measure. Now, which convention you adopt is your decision, so long as you are consistent with it. MoSPI can rightly say, “Well, this is how we’ve always done it. We continue to do it. When the revised estimate comes for this year’s quarter number, whatever will be, will be”. But there is another problem here, a big one which is related to the scale of the revision.
The drop in Q1 FY26 GDP from ₹86.05 lakh crore to ₹80 lakh crore after revision has raised eyebrows. How can that be explained?
