Cong calls new GDP data ‘statistical gymnastics’, punctures Modi govt’s celebration

A day after the government hailed India’s 7.8 per cent real GDP growth in the April-June quarter as evidence of robust economic momentum, the Congress sought to puncture the celebration, questioning the methodology behind the numbers and pointing to unemployment, stagnant wages, weak private investment and inequality.

Congress president Mallikarjun Kharge said the Modi government had left ordinary people grappling with the “3 Us” — “unprecedented unemployment, unbearable price rise and unbridled inequality”.

Congress general secretary Jairam Ramesh described the latest GDP figures as “simply statistical gymnastics”, alleging that repeated changes in the methodology had enabled the government to present a rosier picture of the economy.

“The Modi Government, which has changed the methodology for calculating the GDP twice this year… If the Modi Government gave us honest numbers, the real growth number would be much lower,” Ramesh said, adding that this was a point that had previously been made by several economists, including the government’s former Chief Economic Adviser.

Congress leader Salman Soz also questioned whether the headline growth figure reflected the economic conditions faced by households.

“If the economy is doing well, why are families still having to borrow to spend? Why are rural wages barely above inflation over the last decade? Why is private investment stagnant? Why is net foreign direct investment into India, as a share of GDP, zero? Why is youth unemployment at 16%?” Soz asked.

He also questioned the government’s claims on manufacturing under its flagship “Make in India” programme, saying manufacturing’s share of GDP remained below 13 per cent.

Taking aim at the government’s “Atmanirbhar Bharat” push, Soz said there had been no increase in the country’s strategic petroleum reserve capacity since 2018.

“So far in 2026, approximately Rs 25 trillion has been withdrawn from the Indian equity market. If our country’s economic growth is so good, why are investors withdrawing their money from here?” he asked, also questioning India’s export performance.

Finance Minister Nirmala Sitharaman however on Monday described the new GDP data as evidence of the strength of the Indian economy. “Quarter one of this financial year, 26-27, has come out yesterday, and we’ve clocked 7.8 per cent. The fastest growing Indian economy stands out in the global arena,” she said.

Sitharaman described the growth as “secular”, pointing to 9.2 per cent expansion in manufacturing and 12.1 per cent growth in financial and professional services. She also said India’s foreign exchange reserves stood at slightly over $700 billion.

Prime Minister Narendra Modi, meanwhile, hailed the GDP figures in a video message posted on X, attributing the economic performance to the “collective strength” and hard work of the Indian workforce.

The Congress, however, argued that the headline GDP number did not capture the wider economic picture, seeking to shift the focus from aggregate growth to jobs, household incomes, investment and inequality.