New Delhi, India – In a fiercely contested polity, the state of the economy is a hotly debated topic. In the past decade, India’s gross domestic product (GDP) growth rate has been presented by the Union Government as reflecting its prudent management of the economy, while the Opposition, led by the Congress, accuses it of gaming the system. The controversy has deepened with the first quarter GDP report of 2026-27, which saw the base year changed to 2022-23, coming under a cloud over allegations by a former Finance Secretary, who has received support from the Opposition.
The debate dates back to 2015, when the base year for GDP calculation was changed from 2004-05 to 2011-12, alongside a change in methodology, including the use of the Corporate Affairs Ministry’s MCA-21 database and market rates instead of factor cost. These changes have been debated in the public domain ever since. Critics argue that the revisions make it difficult to compare growth rates over time and question whether the new methodology accurately captures economic activity, particularly in the unorganised sector.
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Frequent revisions to GDP data have further complicated the picture, with claims and counter-claims by the government and the Opposition leading to disputes. The government maintains that the changes are necessary to reflect the evolving structure of the economy and to align with international best practices. The Opposition, however, contends that the revisions are designed to paint a rosier picture of the economy than the ground reality warrants. The ongoing controversy underscores the broader challenge of measuring a complex and rapidly changing economy like India’s, where a large informal sector and data gaps can complicate accurate assessment.
