GDP Data Clash: World Bank's Mishra Terms Critics 'Ill-Educated and Egregiously Wrong'
The debate over India's first-quarter GDP growth data has taken a sharp turn, with World Bank Executive Director Neelkanth Mishra strongly countering those who question the credibility of the 7.8 per cent expansion recorded for April-June 2025. In a public response, Mishra said he was "shocked" by what he called "ill-educated and egregiously wrong" claims regarding the growth figures when measured against an older statistical base.
The remarks come amid an ongoing dispute between former Finance Secretary Subhash Chandra Garg and the government's statistical establishment. Garg has argued that if the government had used the earlier base year of 2011-12 instead of the newly adopted 2022-23, the latest quarter's year-on-year GDP growth would have been significantly lower, possibly around 2.5 per cent in nominal terms. He says the official estimate of 10.3 per cent nominal growth is not consistent with a realistic reading of economic activity.
Supporters of the revised series, including several economists and government officials, dismiss such comparisons as flawed. They point out that the new base year incorporates updated data sources, expanded coverage, and methodologies that align more closely with international norms. Under the old series, the corresponding quarter's GDP was also revised downward, which critics say artificially inflates the latest growth rate when compared with a lowered base. But the government argues that the two series are incompatible and cannot be used interchangeably.
Mishra, while defending the official numbers, also acknowledged certain weaknesses in the economy. Responding to questions about inadequate infrastructure despite high growth, he said India remains a lower-middle-income country and that such gaps may persist for another 15-20 years. He stressed that the pace of improvement should be the focus rather than transient benchmarks.
On the labour market, Mishra admitted there is "slack" and that real wage growth is not yet visible. However, he added that output and demand are growing across sectors, and that most indicators support the conclusion that India is expanding at a robust pace. He also noted that a widespread demand for faster growth is itself a positive sign.
The controversy highlights a broader tension between those who rely on official statistics and those who believe the numbers do not fully reflect ground realities. While the government has defended its methodology as state-of-the-art, the disagreement underscores the need for transparent communication around economic data.
Neither side disputes that India is growing; the argument is about how fast and whether the measurement is accurate. The latest episode also reveals that as India adjusts to a new statistical framework, such debates are likely to continue until the new base year becomes the norm in public discourse.
