India’s economic storytelling is under fire from Congress MP Jairam Ramesh, who charges the Modi government with using inflation-adjusted GDP data to conceal a grim reality of slowdown and distress.
Speaking to reporters in the capital, Ramesh dissected the flaws in real GDP calculations. ‘By baking in inflation adjustments that don’t align with lived experiences, the government is cooking the books,’ he said bluntly.
He backed his claims with stark examples: rural distress, youth unemployment hovering at 45% for ages 15-29, and a manufacturing sector that continues to lag. ‘Real GDP might show 7% growth, but strip away the adjustments, and you’re looking at nominal stagnation,’ Ramesh noted.
Ramesh criticized the base year revisions and deflationary assumptions embedded in the data. ‘The 2011-12 base is outdated, and the deflation factor is a sleight of hand that ignores skyrocketing vegetable and fuel prices,’ he elaborated.
Demanding transparency, he proposed publishing both real and nominal GDP side-by-side for public scrutiny. This, he believes, would reveal how inflation-eroded purchasing power is crippling households.
The timing of Ramesh’s outburst aligns with global concerns over India’s growth trajectory. International agencies like the IMF have revised downward their forecasts, citing consumption weakness—precisely the issues Ramesh amplifies.
Congress has positioned this as part of a broader narrative of ‘economic mismanagement.’ Ramesh referenced past UPA-era practices, claiming they were more forthright. ‘We didn’t hide behind fancy adjustments; we let the numbers speak,’ he reminisced.
Government spokespersons have dismissed such critiques as politically motivated, insisting that real GDP offers the most accurate growth measure. Yet, with inflation biting hard, Ramesh’s call for nominal truth-telling resonates with many.
As fiscal policies loom large, this GDP controversy could shape the upcoming budget discourse and beyond.
