Congress hits back at PM Modi over GDP growth, calls figures a 'Greatly Distorted Picture'

Congress challenges GDP growth narrative

The Congress party on Monday pushed back against the government's celebration of India's 7.8 per cent GDP growth for the April-June quarter, arguing that the headline figure masks deep economic distress. Congress general secretary and Rajya Sabha MP Jairam Ramesh said the quarterly numbers presented a "GDP - Greatly Distorted Picture" of the economy, a play on the acronym that he used to highlight what he called the real state of affairs.

The Ministry of Statistics and Programme Implementation published the GDP data earlier in the day, showing the manufacturing sector grew 9.2 per cent during the first quarter of the financial year 2026-27, up from 8.3 per cent in the same period last year. The services sector grew 10 per cent, compared with 8 per cent a year ago. The overall GDP numbers surpassed the 7 per cent forecast by the Reserve Bank of India for the quarter.

Prime Minister Narendra Modi described the growth as a "herculean feat" achieved despite "oil price shocks and supply chain issues" amid the war in West Asia. In a social media post, he wrote: "Doomsayers were doomed and India bloomed…yet again."

Congress leader cites 'depressed' investment sentiment

Ramesh countered that the GDP numbers do not convey the "decidedly depressed private investment sentiment in the economy – both domestic and foreign." He called the prime minister's celebration "premature," saying that consumer confidence was "sluggish," hitting its lowest point since Covid-19 and on a "relentless downward trajectory" since November 2025.

In a post on X, Ramesh elaborated on the challenges: "Prices of household essentials are galloping. Educated unemployment is at alarming levels. The unabated trade deficit with China is wreaking havoc." He also raised concerns about the concentration of economic power, accusing the prime minister of encouraging a few large business groups to dominate key sectors. "The wealth of India's five richest families has grown by 400 per cent while the real wages of salaried workers have fallen. Household savings rates have fallen and debt has reached record highs," he wrote.

Ramesh's reference to the wealth of India's richest families was in connection with the 2026 Wealth Tracker India study published by the non-profit Centre for Financial Accountability and the Tax The Top campaign. The study said the five richest families in India saw their wealth increase by 400 per cent between 2019 and 2025.

Congress media head questions 'economic spring'

Pawan Khera, Congress's head of media and publicity, said in a post on X: "One quarter of 7.8 per cent growth is not an economic spring. If India has truly 'bloomed,' why is it not translating into jobs and prosperity for its people?" Khera argued that GDP measures only national output, not jobs, wages, or opportunities.

The exchange highlights a sharp divide between the government and the opposition over how to interpret the latest economic data. While the government points to the strong growth figure, the Congress argues that the underlying indicators tell a different story.