All data sources in public domain, several sub sectors performed better than expected, says MOSPI Secretary on 7.8% GDP growth

Underlining the robustness of GDP estimates for the first quarter of the fiscal year, MOSPI Secretary Saurabh Garg said the data points used are in public domain and several sub sectors performed better than anticipated.

"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%," he told reporters on Wednesday. There was strong growth in several sub sectors in the first quarter of the fiscal year including real estate, wholesale and retail trade and tourism, he pointed out.

Similarly, in manufacturing, industries like automobiles, two wheelers and three wheelers also registered significant growth.

Meanwhile, agriculture performed better than expected and grew by 3.6% in the first quarter of the fiscal year.

"Given that, it does seem that the  the resilience of the economy is coming out in the data," he said in response to a question on concerns that the GDP estimates are overstated.

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Official GDP estimates released on August 31 had revealed that the economy grew by 7.8% in the first quarter of the fiscal year despite the West Asia war.

Garg said the first quarter GDP estimates would also see some revisions but these would not be substantial in nature.

MOSPI had also released the National Accounts Statistics – 2026 that revised upwards GDP growth rates for FY24, FY25 and FY26. While GDP growth in FY26 has been revised up to 7.8% from 7.7%, for FY25 it has been revised to 7.2% from 7.1% and for FY24 to 7.3% to 7.2%. It also led to significant revisions in growth for a few quarters leading to questions over the GDP base revision exercise.

Garg said that there have been some changes in the quarter GDP estimates as the quarter numbers are based on indicators, and the annual numbers are based on actual output details.

An analysis of data by international agencies of base revision exercises by about 60 countries had revealed changes of minus 20% to plus 80%, he said, while noting that for India, it was only a downward revision of 2.9%. "This is well within the international range," he said.

Earlier in the day, MOSPI had also released a paper with additional information on the Q1 GDP data, clarifying questions and gad explained how revisions to the GDP series, price deflators, and sector-wise estimates affect the headline numbers.

Garg said the ministry will also be releasing the back series of GDP estimates for the updated base year by the end of the year.