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BJP's ‘Lala- Land’ reply to Congress leader's dig at government over GDP numbers
Jairam Ramesh alleged the GDP numbers released for the first quarter are overstated by a full percentage point because of the price deflators used.
The Congress on Friday alleged the Gross Domestic Product or GDP numbers released for the first quarter of the current fiscal are overstated by a full percentage point because of the price deflators used.
The Bharatiya Janata Party, however, hit back saying, “The headline numbers are not overstated, but reflect the actual changes in the price level of the economy.”
Taking on social media X, formally Twitter, Congress general secretary Jairam Ramesh said going by the present trends, the growth for 2022-23 may hover around 6 per cent.
With growing inequality, even this “disappointing GDP growth of 6 per cent” will not lead to rising incomes for the vast majority of Indians, he stressed. India recorded an economic growth rate of 7.8 per cent in the April-June quarter of 2023-24, according to government data released on Thursday.
“After the headline quarterly GDP growth numbers came out last evening and after the usual round of drum-beating over them, here is the harsh reality – the headline numbers are overstated by a full percentage point because of the price deflators used,” Ramesh wrote.
Consumption growth is lagging behind significantly, especially in rural India, he said.
"Import growth is outstripping growth in exports. Manufacturing growth has still not picked up contrary to whatever claims that are being made," he added.
Ramesh added that the effects of monsoon deficit will begin to reflect from the second quarter onwards. The Congress on Thursday took a swipe at the government over the GDP numbers for the first quarter, saying the only growth that the people of India are worried about is rising prices, increasing unemployment and growing income inequalities.
Ramesh's post, BJP IT cell head Amit Malviya said on X, “Bit rich coming from a former UPA Minister, whose scam-ridden Govt, ran the economy to ground, bringing India into ‘Fragile Five’, with double digit inflation and deplorable policy paralysis.”
Malviya claimed that import growth indicates thriving Indian market, but at the same time, global economy is not in good shape, that is why exports are dropping and it is a global phenomenon, not specific to India alone.
“It seems you haven’t read the press release by MOSPI. The consumption indicator - PFCE has grown by 6% year over year and other high frequency indicators such as - passenger vehicle sale has increased by 10.8%, coal production is up 8.7%, steel production is up 10.8%, cement production is up 12.2%,” Malviya said in reply to Ramesh's post.
As far as the rural demand is concerned - FMCG sales in rural areas increased by 4% and rice production is up 18.7%, the BJP leader said.
“Some economists have in-fact gone on to suggest that data underestimates GDP numbers. They demand a re-examination of Q1 data. NSO relies on IIP data, which represents informal sector. Economists prefer EBITDA data, which captures formal sector. Economists have questioned manufacturing growth numbers. They anticipated it to be more than 10%. Data pins it at just 4.7%, slightly above 4.5%, recorded in Jan-Mar and below 6.1% reported in Apr-Jun, 2022. A relook at the manufacturing numbers could put the GDP growth figure well above 8%!” Malviya added.
“So which ‘Lala- Land’ are you living in? Stop trying to project that the economy isn’t doing well. It is on a massive upswing despite slower than usual global economic conditions. India is today the fastest growing major economy in the world. Celebrate India’s resilience and Modi Govt’s deft economic management through difficult times, instead of constantly whining,” he wrote.
India's economy grows at fastest pace in a year in June quarter
India's economy grew at its fastest pace in a year in the June quarter, supported by strong services activity and robust demand, data released by the government showed on Thursday.
GDP expanded 7.8% on an annual basis in the April to June quarter, accelerating from the 6.1% growth recorded in the March quarter and topping a 7.7% forecast in a Reuters poll.
It was also the highest reading since the equivalent period of 2022, when growth stood at 13.1%.
