New Delhi, 02 September—In a frontal attack on the ruling establishment, the Congress on Wednesday accused the Narendra Modi government of “fudging” economic data and demanded an explanation for revisions to the previous year’s GDP figures, citing former finance secretary Subhash Chandra Garg’s claim that the changes had made the latest growth rate appear stronger.
“Subhash Garg has punctured the government’s tall claims of 7.8% GDP growth, arguing that India’s real GDP growth is closer to 2.6%,” Congress leader Pawan Khera wrote in a post on X (formerly Twitter).
“His contention is even more damning: the previous year’s GDP growth was revised downward, making this year’s growth rate look stronger by comparison”, Khera continued.
Khera said Garg’s assessment appeared closer to “the lived reality of ordinary Indians”, pointing to “rising prices, falling purchasing power, shrinking disposable incomes and savings, stagnant job opportunities, and rising household debt.
“These claims cannot simply be dismissed. They come from someone who served as Finance and Economic Affairs Secretary of the Government of India under Modi between 2017 and 2019,” he said.
“The government now owes the country a clear explanation: Why were last year’s GDP numbers revised downward? Why is it fudging numbers? What is the real GDP growth?”
Jairam Ramesh, the Congress’s General Secretary in-charge of communications, also cornered the Modi government in the same vein.
“The Modi government will only expose its true reality as much as it beats the drum of fabricated GDP growth, conjured up through statistical sleight of hand by its team and media, because this is the complete opposite of ground realities,” Ramesh wrote, also citing Garg’s interview to a media news channel.
“We want the economy to truly be strong, but the path to a strong economy doesn’t come from embellishing numbers fabricated on a foundation of lies—it comes from accepting the truth,” Ramesh underlined.
“The government should first acknowledge the real economic situation, then undertake reforms: jobs should be created for the youth, MSMEs and private investment should be boosted, demand and incomes should rise, economic inequality should decrease, and instead of promoting crony capitalists, fair competition should be ensured.
“The Modi government must understand: PR can polish the picture of GDP, but not the economy itself.
“It’s clear that on the very GDP for which Mr. Modi is urging citizens to burst crackers and celebrate Diwali, serious questions are being raised by his own former Finance Secretary,” Ramesh wrote.
Garg had questioned the revisions made to the previous year’s GDP figures and said the official headline number needed closer scrutiny.
“The 7.8 per cent figure looks impressive on the face of it, but we should examine the reality behind it,” he said in his interview to the NDTV.
“Growth in the first quarter of last year was also initially reported at 7.8 per cent. That figure has now been revised down to 6.9 per cent. If you revise last year’s GDP down, the growth rate for the current year automatically goes up.”
Garg said the first-quarter GDP at current prices for the previous year had initially been estimated at Rs 86 trillion but was subsequently revised down to Rs 80 trillion.
“By revising last year’s GDP down by as much as Rs 6 trillion, the growth in current-price GDP for the first quarter of this year is shown at about 10.3 per cent,” he said.
“Had last year’s GDP not been revised, growth at current prices would have been only 2.6 per cent.”
Asked whether he was suggesting that the earlier figures had been revised to make the latest numbers look better, Garg replied: “That is exactly what I am saying.”
“I am making this statement responsibly. Last year’s first-quarter GDP at current prices was Rs 86 trillion. It has been revised down to Rs 80 trillion, making this year’s figure look better.
“Had the previous figure not been revised, growth at current prices would have been 2.6 per cent.”
Garg’s 2.6 per cent calculation concerns GDP growth at current prices, or nominal GDP.
The former Finance Secretary said the capital expenditure numbers remained strong but raised questions about consumption.
“If you look at gross fixed capital formation, growth this year has been shown at about 15 per cent. The capital expenditure is genuine. Even if you use last year’s original figure, growth remains above 15 per cent. There is no problem with the capital expenditure numbers,” Garg said.
“But look at consumption. Last year’s consumption figure has been revised down so drastically that, if you compare this year’s number with the figure originally released by the government, consumption has contracted.
“That reflects the current economic reality: people’s consumption is declining.”
Garg also said the government should “recognise the reality of India’s economic situation” and undertake reforms instead of “trying to adjust the numbers one way or another”.
India’s economy recorded official GDP growth of 7.8 per cent in the April-June quarter of 2026-27, slowing from 8.6 per cent in the preceding quarter. Prime Minister Narendra Modi described the performance as a “herculean feat”, while the Congress called the figures “statistical gymnastics”.
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