'Headline numbers' overstated by full percentage point: Cong on Q1 GDP growth

The Congress on Friday alleged the GDP numbers released for the first quarter of the current fiscal are overstated by a full percentage point because of the price deflators used.

Congress general secretary Jairam Ramesh also said that going by the present trends, the growth for 2022-23 may hover around 6 per cent.

With growing inequality, even this ”disappointing GDP growth of 6 per cent” will not lead to rising incomes for the vast majority of Indians, he stressed.

India recorded an economic growth rate of 7.8 per cent in the April-June quarter of 2023-24, according to government data released on Thursday.

In a post on X, Ramesh said, ”After the headline quarterly GDP growth numbers came out last evening and after the usual round of drum-beating over them, here is the harsh reality – the headline numbers are overstated by a full percentage point because of the price deflators used.” Consumption growth is lagging behind significantly, especially in rural India, he said.

”Import growth is outstripping growth in exports. Manufacturing growth has still not picked up contrary to whatever claims that are being made,” he added.

Ramesh further said the effects of monsoon deficit will begin to reflect from the second quarter onwards.

The Congress on Thursday took a swipe at the government over the GDP numbers for the first quarter, saying the only growth that the people of India are worried about is rising prices, increasing unemployment and growing income inequalities.