Prime Minister Narendra Modi is attempting to make his government’s’economic performance’ a major electoral issue, claiming that it was he who makes India as the fifth largest economy and bound to make it as third largest one by 2027. He also promised that India will become a ‘super power’ by 2047 rising to the level of No 1 in economic indicators.
However, renowned economist and a former chief economic adviser Dr. Arvind Subramanian on Friday said the government’s GDP numbers don’t add up and were “mystifying”. It may be recalled that he was with the Narendra Modi government only, for nearly four years, starting from 2014. That makes clear that he played a key role at initial stages in formulating Modi’s economic policies.
Speaking at the 21st edition of the India Today Conclave 2024 in New Delhi, Arvind Subramanian said, “I can’t understand the latest GDP numbers, they are mystifying, and don’t add up. For example, the implied inflation numbers given by the government are between 1-1.5%, but the actual inflation is around 3-5%.”
He also pointed out that while the economy was growing at 7.5%, private consumption was lagging at 3%. As per the latest GDP numbers, the Indian economy grew at a rate of 8.4 per cent in the third quarter of the financial year of 2024, a six-quarter high.
Moreover, the GDP figures for the first and second quarters of the ongoing financial year were revised to 8.2 per cent and 8.1 per cent, up from 7.8 per cent and 7.6 per cent respectively. He felt the real growth rate may not be more than 4.3 percent. He also flagged that foreign direct investment (FDI) had declined very sharply in the last two or three quarters.
“It’s not just India’s FDI coming down, but also India’s share of global FDI going to emerging markets has also come down. So the question is, if India has become such an attractive place to invest, why isn’t there more FDI? Corporate and private investment is also well below 2016 levels,” he asked.
Subramanian, however, lauded the revival of manufacturing in southern states and the government’s Production Linked Incentive (PLI) scheme and Atmanirbhar Bharat policy. “Factories are coming up on a large scale, employing anywhere between 5,000-50,000 workers. Moreover, India is also gaining global market share in service exports,” he further said.
Congress and BRS shattered every dream of Telangana’s development, says Modi
Hitting hard at the main political parties in Telangana, Prime Minister Narendra Modi lamented that the Congress and the BRS together shattered every dream of Telangana’s development. Addressing a rally in Nagarkurnool in Telangana on Saturday, he expressed confidence that BJP will win double digit seats in the upcoming Lok Sabha polls in Telangana.
“Today I see here that Telangana people have decided they want to bring back Modi for the third time,” he said. Emphasising that the Scheduled Castes and Scheduled Tribes are the biggest beneficiaries of Central government schemes, the Prime Minister charged that the schemes are always opposed by the Congress and “corrupt and dynastic” parties like the BRS.
Referring to the recent controversy regarding Deputy Chief Minister Mallu Bhatti Vikramarka, he said, “We all saw how the Deputy Chief Minister, who belongs to a Scheduled caste, was insulted recently”.
Accusing the 10-year BRS rule marked with corruption, he cautioned that for the Congress party, five years is enough to destroy Telangana.”First, it was BRS’s ‘maha loot’ and now it is Congress’s ‘buri nazar’. For Congress, even five years are enough to destroy Telangana,” he added.
He said that ahead of the Election Commission announcing the poll schedule, the people of India have decided to elect BJP candidates in 400 seats. He is confident that the people of Telangana are also saying “Teesri baar Modi sarkar” and they have decided to bring back Modi for a third time.
Modi said people have already announced the results of upcoming Lok Sabha polls and they have decided to give 400 seats to NDA. “The election dates (for Lok Sabha polls) will be announced in Delhi in some time. However, people of the country have already announced the results even before the election dates are officially announced. The country has announced ‘Abki baar 400 paar’, and the crowd here at Nagarkurnool is a testimony to that,” he said.
Modi said 140 crore Indians are his family and ‘Modi ki guarantee’ means a guarantee that will be fulfilled. “Modi’s family are 140 crore Indians. For the last 23 years, earlier working as chief minister and now as PM, you gave me a chance to serve”, he said.
Modi said that he has never used any day for himself. “If I have lived and worked day and night, it has been for 140 crore family members. ‘Modi ki guarantee’ means the guarantee of fulfilling the guarantee given,” he added. Modi said 25 crore people were lifted out of poverty in the country during his regime.
