The Economic Times

2xble deflation demystified: GDP numbers may look puzzling, but the new methodology measures the economy differently

India's Q1 FY27 GDP deflator appears low, but national accounts explain this divergence. Double deflation methodology separates output and input price movements accurately. Divergent input and output prices can create negative manufacturing deflators. Net exports and net taxes on products also significantly influenced the headline figure. These refined statistical methods strengthen India's economic data framework.