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India’s economy recorded a robust 7.8 per cent real growth and 10.3 per cent nominal growth in the first quarter of FY27, according to a report from SBI Research released on Wednesday.

The report addressed the debate sparked by the National Statistical Office’s revised GDP release, which included a changed base year and updated historical figures.

SBI Research criticized attempts to question the growth rate by using mismatched GDP series, labeling claims of only 2.6 per cent nominal growth as fallacious because they compare data from different base years.

The controversy began when the NSO’s revision lowered the nominal GDP estimate for Q1 FY26 to about Rs 80 lakh crore, down from Rs 86.1 lakh crore reported earlier under the old base year.

According to the SBI report, some analyses mistakenly compared the new Q1 FY27 data with the older Q1 FY26 figures without adjusting for the base-year revision.

Using the revised base consistently, nominal GDP growth is approximately 9.7 per cent, closely aligning with the official 10.3 per cent estimate, while real GDP growth stands around 7.4 per cent.

The report emphasized that GDP revisions are normal and part of the statistical process, intended to enhance data accuracy as new information is integrated.

SBI Research explained that revising the base year improves consistency between price indicators, production data, and GDP deflators, while also promoting transparency by updating historical data alongside current estimates.

It noted that the current Q1 FY27 GDP figures will be finalized only by February 2029 after multiple revision rounds incorporating additional data.

The report rejected claims that the latest base-year revision inflated India’s economic size, clarifying that the revision actually lowered nominal GDP estimates compared to previous figures.

Lastly, SBI Research pointed out that historical GDP data frequently undergo revisions in both directions, reflecting the evolving nature of economic measurement.