'Greatly Distorted Picture' of India's economy: Cong dig at govt over GDP growth

NEW DELHI, Aug 31: The Congress today said that the 7.8 per cent GDP growth in the April-June quarter is "not an economic spring" and claimed it presents a "Greatly Distorted Picture" of the state of India's economy as it doesn't convey the "depressed" investment sentiment.

The opposition party also questioned why, if India has truly "bloomed", it is not translating into jobs and prosperity for its people.

India's economy grew at a faster-than-expected 7.8 per cent in the April-June quarter, according to government data released on Monday, with Prime Minister Narendra Modi taking a dig at those questioning the state of the Indian economy, saying "doomsayers were doomed and India bloomed yet again".

Hitting back at Modi, Congress general secretary Jairam Ramesh said this is a case of "premature celebration" by the prime minister, as consumer confidence is "sluggish", household saving rates have fallen and debt has reached a "record high".

"The quarterly GDP numbers, such as they are reported,  present a GDP - Greatly Distorted Picture - of the economy.

"They do not convey the decidedly depressed private investment sentiment in the economy - both domestic and foreign," Ramesh said in a post on X.

"Consumer confidence is very sluggish, hitting its lowest point since COVID and on a relentless downward trajectory since November 2025. Prices of household essentials are galloping. Educated unemployment is at alarming levels. The unabated trade deficit with China is wreaking havoc.

"The capture of key sectors by a couple of big conglomerates deliberately encouraged by the PM is having deleterious effects. The wealth of India's 5 richest families has grown by 400% while the real wages of salaried workers have fallen. Household savings rates have fallen and debt has reached record highs," the Congress leader claimed in his post.

In a post on X, Congress' head of media and publicity department Pawan Khera said, "One quarter of 7.8 per cent growth is not an economic spring. If India has truly 'bloomed', why do rampant unemployment, leaked exam papers, and a crumbling education system define the ground reality?".

"Why is the republic's prosperity not translating into the prosperity of its public?" he said.

The prime minister said that India's exemplary GDP growth during Q1 of FY 2026-27 is a "herculean feat".  "The collective strength of our people ensured India delivered such growth despite oil price shocks and supply chain issues in the midst of global uncertainties," Modi said in a post on X.

However, Khera said, "GDP measures national output - not jobs, not wages, not opportunity. If it measured any of those, the future of India's youth would not look so bleak.

"Modi can manage his headlines. For India's youth, the question remains the same as ever: Where are the jobs?"

The GDP growth, which keeps India as the world's fastest-growing major economy, also exceeded the Reserve Bank of India's forecast of 7 per cent for the quarter, underscoring the strength of domestic economic activity despite heightened geopolitical risks.

The central bank has projected the economy to expand 6.7 per cent in the full 2026-27 fiscal year. The Q1 growth compares to 6.9 per cent expansion in the year-ago quarter, according to government data released on Monday. (PTI)