The Congress party's attack on the government followed the publication of data showing India's GDP grew by 7.8% in the quarter from April to June. The opposition party stated that this figure is not an 'economic spring' and presents a 'highly distorted picture' of the economy's state.
The opposition questioned why the country's economic growth is not translating into jobs and prosperity. In response, Prime Minister Narendra Modi characterized the first quarter results as 'exemplary' and a 'titanic achievement.'
Congress General Secretary Jairam Ramesh noted that quarterly GDP figures do not reflect the decline in private investment, both domestic and foreign. He stated in an X post that the presented quarterly figures create a 'highly distorted picture' of the economy because they do not clearly convey the declining sentiment in private investment.
Ramesh also asserted that consumer confidence is weak, household savings rates have fallen, and debt has reached record levels. He added that prices for essential goods are rising rapidly, and educational unemployment is causing serious concern. Furthermore, he pointed to the destructive impact of the continuous trade deficit with China.
Moreover, Ramesh stated that the concentration of key sectors in the hands of a few large conglomerates has a 'detrimental effect.' He emphasized that the wealth of India's five richest families increased by 400 percent, while the real wages of employed workers have decreased.
Congress Media and Public Relations Head Pawan Khera stated that the 7.8 percent quarterly growth is not an 'economic spring.' He asked, if India has truly 'flourished,' then why is reality defined by widespread unemployment, leakage of examination materials, and a deteriorating education system.
Khera also questioned why the republic's prosperity is not translating into the well-being of its citizens. Criticizing the Prime Minister's remarks, he noted that GDP figures reflect national output, not jobs, wages, or opportunities. He concluded by addressing the youth of India: 'Modi can manage his headlines. For the youth of India, the question remains the same: Where are the jobs?'
The criticism from Congress came after the government published data showing that India's economy grew faster than expected—by 7.8% in April-June. This figure exceeded the Reserve Bank of India's forecast of 7% for this quarter and maintained India's status as one of the world's largest fast-growing economies.
Responding to this data, Prime Minister Modi reacted to skeptics, stating that 'pessimists were doomed, and India has blossomed again.' The Prime Minister called India's GDP growth in the first quarter of the 2026-27 fiscal year a 'titanic achievement.' He attributed this to 'the collective strength of our people ensuring such growth for India, despite oil price shocks and supply chain issues amid global uncertainty.'
The first-quarter growth is compared to a 6.9% expansion in the quarter a year earlier. The RBI forecasts that India's economy will grow by 6.7% throughout the entire 2026-27 fiscal year.