India’s Q1 GDP Surges 7.8%, Triggering Sharp Divide Over Economy’s Strength

Manufacturing growth stood at 9.2 percent, while services grew at nearly 10 percent. Capital formation also increased by 11.9 percent, adding to the headline strength of the latest economic figures.

Prime Minister Narendra Modi welcomed the numbers and called for conserving foreign exchange by avoiding foreign travel and gold purchases in favour of local options.

The figures, however, drew criticism from former Finance Secretary Subhash Chandra Garg, who argued that revisions had inflated the numbers. Garg estimated that real growth was near zero when assessed using older data.

Economist Sridhar Vembu also called for greater discipline over imports, pointing to the approach followed by East Asian economies during their rise.

The contrasting assessments have highlighted a growing divide over how India’s economic performance should be interpreted, with strong aggregate growth figures facing questions about the economic pressures experienced in everyday life, including urban flooding and poverty.