Ex-RBI Chief Raghuram Rajan Questions Reality Of India's 7.8% GDP Growth, Flags Concerns Over Jobs, Investment
New Delhi: Economist and former Governor of the Reserve Bank of India (RBI) Raghuram Rajan and former Finance Secretary in Modi government Subhash Garg on Wednesday, September 2, questioned India’s 7.8% GDP Growth, noting discrepancies in the calculations.
The economist pointed out the disconnect between India’s reported 7.8% GDP growth in the first quarter of FY 2026-27 and weaker signals like limited job creation, sluggish private investment, and soft FDI inflows.
Rajan warned that missing this chance during India’s demographic dividend could leave young workers behind. Several opposition figures and others like former Finance Secretary Subhash Chandra Garg echoed Rajan’s doubts about whether headline numbers match ground realities.
Speaking to NDTV, former Finance Secretary in Modi government, Subhash Garg also echoed similar view stating that the government has fudged GDP figures. He is heard saying that if the figures had not been fudged, real GDP growth would be only 2.6%, not 7.8%.
Former Finance Secretary in Modi Govt Subhash Garg says Modi Govt fudged GDP figures.
He says if the figures had not been fudged, real GDP growth would be only 2.6%, not 7.8%.
Notice the complete meltdown of the NDTV anchor. pic.twitter.com/k4uveGjS0M
— Ruchira Chaturvedi (@RuchiraC) September 2, 2026
Prime Minister Narendra Modi had called the growth a herculean feat amid global challenges. Hailing the reported growth for the April–June quarter (Q1) of FY 2026–27, Modi called it a “herculean feat” that surpassed the Reserve Bank of India’s (RBI) 7% forecast. He also hit out at the critics saying doomsayers were doomed and India bloomed.
Sharing Rajan’s view, Congress flagged questions if India is growing, where are the jobs for the youth, why there are no investment taking place,
“Are we doing what is necessary to create good jobs? Are we doing what is necessary to stay at the forefront in all the sectors where we have a presence? If the answer to both questions is no, then we have a fundamental problem, because this is our moment of demographic dividend. If we are not creating enough jobs for all the young people entering the labour force, we risk losing the demographic dividend,” Congress wrote in its X handle.
👉 If we are growing so fast:
⦿ Why aren’t we creating more good jobs?
⦿ Why is investment not taking place?
⦿ Why are our industrialists so reluctant to invest?
⦿ Why is FDI not coming in a much bigger way?👉 The more important questions to ask are:
⦿ Are we doing… pic.twitter.com/oM34FoncHN
— Congress (@INCIndia) September 2, 2026
