Following the release of India’s FY26 GDP estimates on June 5, and most recently, post the release of the estimates for Q1FY27 on August 31, there have been extensive commentaries on the state of the Indian economy. Much of it has been optimistic about India’s economic momentum. A section of academic opinion, however, has continued to be sceptical about the reliability of the evidence underlying this optimism, pointing to issues in national accounts methodology. Here, we seek to examine and address the important concerns raised.

The 7.8 per cent real GDP growth recorded in Q1FY27 is underpinned by a broad constellation of high-frequency indicators, lending credence to the strength and breadth of the expansion. Commercial vehicle sales grew 18.3 per cent, signalling strengthening freight and business demand, as firms expand fleets in anticipation of higher demand. The investment cycle appears particularly robust: Capital-goods production grew 15.2 per cent and machinery and equipment imports 51.5 per cent. Cement production, finished steel consumption and infrastructure/construction goods also expanded strongly in Q1. E-way bill generation remained in double-digit growth, while gross GST collections rose 8.4 per cent despite substantial rate rationalisation. Together, these indicators point to resilient underlying activity.

Consumption, too, remained resilient, with household vehicle registrations and three wheelers pointing to firming discretionary demand in Q1FY27. Non-food bank credit grew 18.3 per cent year-on-year at end-June, up from 15.9 per cent in March, with broad-based growth across agriculture, industry and services. The confluence of strong investment, resilient consumption, buoyant goods movement and expanding bank credit suggests that the........

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