PM Modi slams critics of GDP data, says 'glass will always be half empty'

Prime Minister Narendra Modi addressed the centenary celebrations of Delhi University’s Shri Ram College of Commerce (SRCC) on Saturday, criticizing those responsible for placing India among the "fragile 5". He attributed this change to India’s transition from policy paralysis to policy dynamism. Modi pointed out India’s remarkable 7.8% GDP growth in the April-June quarter, noting it as a testament to the country’s economic strength.

However, this growth figure faced skepticism, with a former senior Finance Ministry official, Subhash Chandra Garg, questioning its accuracy. Garg alleged that the earlier GDP estimate for 2024-25 was revised downwards from ₹86 lakh crore to ₹80 lakh crore, reducing the growth rate to around 2.6% if not for this change. This figure, Garg argued, was largely due to revisions in the services sector.

Meanwhile, former central bank governor Raghuram Rajan questioned why this rapid expansion had not yielded more job creation or investment. He clarified his remarks, stating his concern was broader, not specifically about the GDP figures. India's GDP for the quarter expanded 7.8%, surpassing the 7.1% estimated by a Reuters poll, driven by increased investment, robust manufacturing, and steady consumer demand.