Congress Targets Modi Government Over Rising Prices, Questions 7.8% GDP Growth

The Congress has stepped up its criticism of the Centre’s economic record after India reported 7.8 per cent GDP growth in the April-June quarter, arguing that strong headline expansion has not translated into enough jobs, higher household incomes or wider economic security.

Congress president Mallikarjun Kharge accused the Narendra Modi government of celebrating economic statistics while ordinary Indians continue to face unemployment, expensive essentials and widening inequality. He described these as the country’s three major economic challenges and questioned whether GDP growth was improving living standards for the average citizen.

Congress general secretary Jairam Ramesh also challenged the credibility of the latest growth estimate, alleging that repeated changes in the methodology used to calculate GDP have produced an overly favourable picture. He particularly questioned the relationship between GDP deflators and wholesale price inflation, arguing that the reported growth rate may not adequately capture the rise in input costs.

Ramesh further criticised the government’s Make in India record, while party leader Salman Soz raised questions about manufacturing, private investment, youth employment, foreign investment and household borrowing. Soz argued that the benefits of economic expansion should be assessed through indicators such as wages, employment and investment rather than GDP alone.

Congress spokesperson Pawan Khera separately questioned what the 7.8 per cent growth rate had delivered for farmers, young people and small businesses, keeping the focus on the gap between aggregate growth and everyday economic conditions.

The opposition’s criticism comes as the government highlights the economy’s resilience. Prime Minister Narendra Modi has described the performance as a major achievement despite geopolitical tensions and global disruptions, while Finance Minister Nirmala Sitharaman pointed to strong manufacturing and services growth.

Official data showed the economy expanding 7.8 per cent year-on-year in the first quarter of FY27, exceeding the RBI’s 7 per cent forecast, although growth moderated from 8.6 per cent in the preceding quarter.