PM Modi at SCO Summit: Calls for Action on Cross-Border Terror, Connectivity, and Trade

In an interview with India Today, economist and former NITI Aayog Vice Chairman Professor Rajiv Kumar defended India's latest GDP growth figures against opposition criticisms. Rejecting claims that growth benefits only the top tier, Kumar highlighted an 8-9% increase in employment-intensive exports alongside a 9.2% growth in manufacturing and 10% in services. He noted a turnaround in private investment, with gross fixed capital formation rising by 11.8% and commercial bank credit surging. Kumar remarked, "When you see a good thing, let's recognize a good thing," while underscoring that 7.8% GDP growth remains significant amid global headwinds. He cautioned that emerging inflationary pressures in food and commodity sectors require vigilance to sustain expansion.

In an interview with India Today, Congress MP and former minister Manish Tewari questioned the ground reality behind India's reported 7.8% GDP growth rate. Manish Tewari asked, "It is 7.8% for whom?" arguing that headline economic figures fail to reflect the daily struggles of ordinary citizens. He highlighted three major structural challenges confronting the nation: high inflation reflected in consumer and wholesale price indices, rising income inequality where the richest 10% hold 65% of the wealth, and an escalating jobs crisis. Tewari stated that the growth story is primarily driven by public capital expenditure rather than private investment stepping up. He noted that key macroeconomic indicators, including the savings-to-GDP and production-to-GDP ratios, have witnessed declines over the years. Concluding his assessment, Tewari stated that revised base years and selective data do not reflect the true state of the economy for the common person.

In an exclusive interview, Sanjeev Sanyal, Member of the Economic Advisory Council to the Prime Minister, addressed India's latest GDP growth print of 7.8 percent, stating that the '7.8% GDP growth rate is a very strong one.' Sanyal noted that growth was broad-based across manufacturing, construction, and services sectors, supported by public and private investments. Responding to geopolitical risks and inflation concerns, he highlighted the diversification of energy supplies and noted that unemployment rates continue to drift downward according to official data. Addressing political criticisms over corporate profitability versus household consumption, Sanyal dismissed claims of widespread household distress, pointing to record car sales and robust consumer purchases. He also defended the updated GDP base year methodology, explaining that updating baskets to include newer growth sectors aligns with international best practices and standard statistical norms.

India's economy registered a GDP growth of 7.8% in the April-June quarter, surpassing the Reserve Bank of India's forecast of 7%. The expansion was broad-based, with manufacturing growing at 9.2%, services surging at 10%, and investment rising by 11.9% through gross fixed capital formation. The Chief Economic Advisor noted that the performance reflects continued resilience amid global economic uncertainties. While the government highlighted the numbers as a major milestone demonstrating economic momentum, the opposition described the figures as a distorted representation of the economy. The opposition raised concerns regarding whether high headline growth is translating into employment opportunities, improved household incomes, and increased purchasing power for ordinary citizens across the country.