PM Modi Takes Swipe At 'Fragile 5' Critics At SRCC Visit, Says They Are Unable To Digest India's 7.8% GDP Growth

(MENAFN- Live Mint) Prime Minister Narendra Modi, while speaking at the centenary celebrations of Delhi University's Shri Ram College of Commerce (SRCC), on Saturday took a swipe at those he said were responsible for placing the country among the 'fragile 5', saying they are now unable to digest India's 7.8% economic growth.

India has moved from the policy paralysis it faced in 2013 to an era of policy dynamism, he said.

“Today, those spreading terrorism are trounced. If Pakistan indulges in any nefarious act, the Indian army enters their home and strikes; the back of Naxalism has been broken...from policy paralysis to policy dynamism, India has come a long way,” PTI quoted PM Modi as saying.

"They once called us the 'Fragile Five'. Today, they are talking about India as the fastest-growing major economy," he added, noting that India's 7.8% GDP growth despite global uncertainty reflects the country's economic strength.

The comment comes amid India's stronger-than-expected economic growth triggering questions over whether the expansion accurately reflects conditions on the ground.

What's the controversy?

A former senior Finance Ministry official Subhash Chandra Garg raised doubts about the reported growth rate. Garg told a news channel that the growth figure was overstated because the government had lowered the GDP estimate for the previous year, which serves as the comparison base.

Garg stated that GDP growth at current prices would have been only around 2.6% if the previous year's GDP had not been revised downward from about ₹86 lakh crore to ₹80 lakh crore.

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

Garg further said the Ministry of Statistics and Programme Implementation (MoSPI), which released the latest figures, had retrospectively cut the nominal GDP estimate for Q1 FY2025-26 from around ₹86.05 trillion to ₹80 trillion. The ₹6.05 trillion reduction was largely attributed to revisions in the services sector on the production side.

"If you had not revised last year's GDP, the growth in current prices would have been 2.6 per cent," Garg said.

The Congress party used Garg's criticism of the GDP figures to target the government, stating that 'PR can polish the picture' of GDP, but not the economy itself.

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

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He later clarified in a LinkedIn post that he had neither challenged nor backed the GDP figures released this week, adding his concern was broader, questioning why sustained strong GDP growth had not resulted in higher private and foreign investment or the creation of more decent jobs. Rajan stressed that this was separate from questioning any specific GDP estimate.

Central government response

The government, however, stood by the data.

India's economy, the world's fifth-largest, expanded 7.8% in the April-June quarter from a year earlier, according to government data released Monday. The growth exceeded the 7.1% estimate from a Reuters poll, helped by increased investment and robust manufacturing activity alongside steady consumer demand.

Also Read | Explained | Why India Q1 Real, Nominal GDP are 'table-thumping' numbers

India's Ministry of Statistics convened a press briefing on Wednesday evening to respond to criticism from Garg, who authored the 2025 book“No, 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 consultations.

The revised approach, which the government said would provide a more accurate picture of economic activity, introduced a new data series that put the nominal GDP for April-June 2025 at ₹80 trillion ($850 billion), down from ₹86.05 trillion under the previous series.

PM Modi had 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 had last visited the college in 2013, when he was serving as Gujarat chief minister. Earlier this year, in April, the prime minister met the college's governing body and a delegation from SRCC at his residence to commemorate the institution's centenary. He also unveiled a special postage stamp marking the occasion.

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