Former Chief Economic Adviser (CEA) Krishnamurthy V Subramanian backed India’s Gross Domestic Product (GDP) growth figure of 7.8 per cent for the April-June 2026 quarter after the Congress doubted its accuracy, saying it was calculated using the cutting-edge “double deflator” methodology.
But now I think these signs are clearly there that private investment is picking up.”
Asked about the Opposition’s allegation that economic indicators like employment and foreign investment are not proportionately increasing with the GDP growth, he said, ” You know, for a long time, we were worried about private investment not picking up.
So private investment actually clearly seems to be going up. They’ll actually, of course, purchase more capital goods, right? “I see on TV some of the Opposition leaders, even possibly a former finance secretary or a former RBI (Reserve Bank of India) governor, both of whom could not complete their tenure in India… They don’t even know [that they should] compare apples with apples.
Because when companies want to invest, what will they do, and finally, one more statistic, if you want to use it actually: look at the IIP for capital goods,. “This year, if you see Q1, the gross fixed capital formation, which is basically technical jargon for investment in the economy, has grown by 12 per cent. Private capital expenditures of listed companies- and this is a city report; this is not the Government of India that actually, you know, people may use- that has grown by 11 per cent. You know, when you put that together with bank credit, that is RBI data, which is actually July to July- has grown at about 20 per cent. And that has grown by over 15 per cent.
So when you put it all together, I think the data clearly says that investment is picking up,” he added. They are trying to misguide the people of India, comparing growth rate [based on an] old series with a new series where the base year itself has changed,” he said.
