In the first half of 2025-26, real GDP growth has averaged 8 per cent, with the manufacturing sector’s gross value added (GVA) up 8.4 per cent, higher than the overall GVA growth of 8.1 per cent. Story continues below this adWhy was services inflation per GDP data so low? Because real GVA growth for services was arrived at by adjusting GVA in current prices with mostly wholesale inflation – which doesn’t include any services. The result is “exaggerated real growth”, according to HSBC economists, who estimate real GDP growth in July-September to have been overstated by 120 bps due to the deflator issues. Of course, what that may do to the growth rate is anybody’s guess and will likely raise new questions.

Source: Indian Express December 21, 2025 05:02 UTC