New Delhi, Sept. 14 -- Some narratives are grounded in evidence, while others derive their force from selective interpretation rather than the facts themselves. The narrative of the "missing" Rs.6 trillion in nominal GDP in the first quarter of 2025-26 or Rs.42 trillion in nominal GDP from the first quarter of 2022-23 to the second quarter 2025-26 is one such case.

Four questions, political as well as economic, have emerged following the government's declaration of India's GDP growth at 7.8% in the first quarter of 2026-27.

First, what explains large revisions in nominal GDP. Second, what is the breakdown of these downward revisions across sectors. Third, why the deflator used to adjust data for inflation is so low despite high wholesal...