New Delhi: Senior Congress leader Jairam Ramesh has launched a scathing attack on the government’s economic reporting practices, accusing it of deliberately obscuring India’s true financial health through manipulated inflation-adjusted GDP figures.
In a pointed statement released today, Ramesh argued that the current methodology for calculating GDP, which incorporates inflation adjustments, paints an overly rosy picture that doesn’t reflect ground realities. ‘These numbers are not just misleading; they are a deliberate attempt to hide the weakening economic pulse of the nation,’ he declared.
Ramesh highlighted several key discrepancies. He pointed out that while headline GDP growth rates have been touted as robust, critical indicators like private consumption and investment remain stagnant. ‘When you adjust for inflation using dubious indices, you create an illusion of prosperity amid rising costs for everyday Indians,’ he explained.
The Congress leader drew attention to the Wholesale Price Index (WPI) and Consumer Price Index (CPI), which he claims are understated to favor government narratives. Recent data shows food inflation soaring past 8%, yet GDP adjustments fail to capture this adequately, according to Ramesh.
He urged for a shift to nominal GDP reporting, which would provide a clearer, unvarnished view of economic expansion without the veil of inflation tweaks. ‘Nominal figures would expose the truth: growth is faltering, jobs are scarce, and inequality is widening,’ Ramesh asserted.
This criticism comes at a time when the government is preparing to release fresh quarterly GDP data. Economists have long debated the merits of real versus nominal GDP, with proponents of Ramesh’s view arguing that real GDP can sometimes mask underlying inflationary pressures.
Ramesh also took aim at the RBI’s role, questioning why independent assessments aren’t prioritized. ‘The government’s grip on data integrity is eroding public trust,’ he warned, calling for an independent economic audit.
As opposition voices grow louder ahead of elections, this salvo from Congress underscores deepening political divides over economic stewardship. The debate over GDP metrics is likely to intensify, with implications for policy and investor confidence.
