PM Modi hits out at ‘fragile 5’ critics on SRCC visit, says unable to digest India’s 7.8% GDP growth | Today’s news

At the centenary celebrations of Delhi University’s Shri Ram College of Commerce (SRCC) on Saturday, Prime Minister Narendra Modi lashed out at those he said were responsible for placing the country among the “fragile 5”, saying they were now unable to digest India’s 7.8% economic growth.

According to him, India has moved from the political paralysis it faced in 2013 to an era of political dynamism.

“Today, those who spread terrorism are defeated. If Pakistan indulges in any nefarious act, Indian Army will enter their house and attack; the backbone of Naxalism has been broken…from political paralysis to political dynamism, India has come a long way,” PM Modi was quoted as saying by PTI.

“They used to call us the ‘Fragile Five’. Today they talk about India as the fastest growing major economy,” he added, adding that India’s 7.8% GDP growth despite global uncertainty reflects the country’s economic strength.

The comment comes amid stronger-than-expected economic growth in India, raising questions about whether the expansion accurately reflects conditions on the ground.

What is this dispute?

Former senior finance ministry official Subhash Chandra Garg expressed doubts about the reported growth rate. Garg told the news channel that the growth figure was inflated because the government had lowered the previous year’s GDP estimate, which serves as a benchmark.

Garg said GDP growth at current prices would have been only around 2.6% if the previous year’s GDP had not been revised downwards from around ₹86 million million crowns ₹80 million million crowns.

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He also claimed that real GDP for the first quarter of the previous year was published using the old data series, while the core figure for Q1 2025-26 was taken from the revised series.

Garg further said that the Ministry of Statistics and Program Implementation (MoSPI), which has released the latest data, has retrospectively reduced the nominal GDP estimate for the 1st quarter of FY 2025-26 from around ₹86.05 trillion to ₹80 trillion. The ₹6.05 trillion reduction was largely attributed to revisions in the services sector on the manufacturing side.

“If you had not revised last year’s GDP, the growth in current prices would have been 2.6 percent,” Garg said.

The Congress party used Garg’s criticism of the GDP data to target the government, saying “PR can polish the image” of the GDP but not the economy itself.

Meanwhile, Raghuram Rajan, a former central bank governor, questioned why such rapid expansion had not translated into stronger job creation and investment.

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Later in a LinkedIn post, he clarified that he did not dispute or endorse the GDP figures released this week, adding that his concerns were broader and questioned why sustained strong GDP growth had not led to higher private and foreign investment or the creation of more decent jobs. Rajan emphasized that this was separate from challenging any specific GDP estimate.

The central government’s response

But the government stood behind the data.

India’s economy, the world’s fifth largest, grew 7.8% in the April-June quarter from a year earlier, according to government data released on Monday. Growth beat the 7.1% estimate in a Reuters poll, helped by increased investment and strong manufacturing activity along with steady consumer demand.

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India’s statistics department called a press conference on Wednesday evening to respond to criticism of Garg, who wrote a book in 2025, “No, Mr. Minister,” detailing his disagreements with the political leadership.

A senior statistics ministry official defended the government’s revisions to the GDP calculation process, saying the methodology introduced in February followed extensive consultation.

The revised approach, which the government says would provide a more accurate picture of economic activity, introduced a new data series that puts nominal GDP for April to June 2025 at ₹80 trillion ($850 billion), less than ₹86.05 trillion for the previous series.

PM Modi visited SRCC in 2013

Meanwhile, PM Modi’s visit to SRCC comes as the Bharatiya Janata Party (BJP) continues its efforts to connect with younger voters. He last visited the college in 2013 when he was the Chief Minister of Gujarat. Earlier this year, in April, the Prime Minister met the governing body of the academy and a SRCC delegation at his residence to commemorate the centenary of the institution. He also unveiled a special postage stamp to mark the occasion.