In a bold accusation, Congress leader Jairam Ramesh has accused the central government of deploying misleading inflation-adjusted GDP statistics to mask India’s faltering economy.
Addressing a virtual press conference, Ramesh laid bare what he termed a ‘statistical smokescreen.’ He explained how real GDP, deflated for inflation, creates a distorted lens that overstates progress. ‘This isn’t economics; it’s propaganda,’ he charged.
Delving into specifics, Ramesh spotlighted the divergence between official growth claims and on-ground suffering. ‘Farmers face 10% input cost inflation, but GDP adjustments pretend it’s under control,’ he said, citing NSSO surveys on consumption decline.
He advocated for nominal GDP as the honest metric, arguing it reflects raw economic output without manipulative subtractions. ‘Nominal GDP growth has barely crossed 10% in recent quarters—hardly a boom,’ Ramesh calculated.
Ramesh also flagged methodological issues, including the exclusion of informal sector data post-demonetization. ‘Millions dropped out of the economy, yet GDP figures pretend otherwise,’ he alleged.
This isn’t Ramesh’s first rodeo on economic critique; his environmental background lends credibility to data-driven arguments. He called on the Finance Ministry to convene an expert panel for GDP overhaul.
Amidst a backdrop of global recovery debates, India’s metrics face heightened scrutiny. Ramesh warned that perpetuating these ‘bhramak’ (illusory) numbers risks long-term credibility with investors and rating agencies.
Opposition allies have echoed his sentiments, signaling a concerted push. As Q2 results approach, all eyes are on whether the government will respond or double down.
Ultimately, Ramesh’s intervention reignites essential questions: Whom do our economic statistics serve—the people or the polity?