SBI Rejects 2.6% GDP Growth Claim, Says Comparison of Data Is Incorrect

The State Bank of India (SBI) has rejected claims that India’s economic growth was effectively only 2.6% in the April-June quarter of the financial year 2026-27, calling the calculation misleading and based on an incorrect comparison of gross domestic product (GDP) figures.

The bank said the official data showed real GDP growth of 7.8% in the first quarter of FY27, while nominal GDP expanded by 10.3%. SBI argued that the 2.6% figure emerged from comparing the latest estimate for the April-June quarter of FY27 with an earlier, unrevised figure for the corresponding quarter of FY26.

According to the bank, GDP estimates are regularly revised as additional information becomes available. Comparing figures from different stages of the revision process can therefore produce a distorted picture of economic performance. SBI described the interpretation of the data as “intellectual dishonesty” and maintained that the latest official estimates should be compared with the corresponding revised figures from the previous year.

SBI further said that even if an alternative approach was used to assess growth, the economy’s real expansion would still be around 7.4%, substantially higher than the 2.6% figure being circulated.

The dispute comes amid questions raised over the credibility of India’s latest GDP numbers and the methodology used to calculate economic growth. Former Finance Secretary Subhash Chandra Garg has questioned aspects of the revised GDP estimates and raised concerns over the manner in which the new series presents economic growth.

The government and economists supporting the revised figures have defended the methodology, pointing out that the latest GDP series incorporates an updated base year and newer sources of economic data. Officials have argued that these changes are intended to provide a more accurate representation of the structure and performance of the Indian economy.

The debate over the GDP figures has gained significance because the growth rate is closely watched by investors, policymakers and international institutions as an indicator of the country’s economic momentum. SBI’s response seeks to counter interpretations suggesting that the headline 7.8% growth figure substantially overstates the actual pace of expansion. The bank maintained that the official numbers, when compared on a consistent and revised basis, indicate strong economic growth during the first quarter of FY27.