‘5 families grew 400% richer as commoners’ debt hits record high’

New Delhi: Congress leader Jairam Ramesh has questioned the latest GDP figures, arguing that the headline growth rate fails to reflect the actual condition of India’s economy. He cited weakening consumer confidence, rising prices of essential goods, unemployment among educated Indians and mounting household debt to attack the Centre’s claims of strong economic performance.

Official data released on Monday showed that India’s GDP grew 7.8% in the first quarter of the 2026-27 financial year. Ramesh, however, argued that the figure presents an incomplete picture of economic health.

He pointed to a slowdown in private investment, saying both domestic and foreign investor confidence remained weak. Consumer confidence, he claimed, has fallen to its lowest level since the Covid-19 pandemic and has been declining continuously since November 2025.

Ramesh also highlighted growing pressure on household finances, with essential commodities becoming more expensive and household savings declining, while debt has reached record levels. He further claimed that real wages of salaried employees had fallen even as the combined wealth of India’s five richest families had surged by around 400%.

Among other concerns, he cited persistently high unemployment among educated people, India’s continuing trade deficit with China and the excessive influence of a handful of large industrial groups over key sectors.

Ramesh criticised the Centre’s celebration of the GDP numbers and described Prime Minister Narendra Modi’s response as premature, arguing that the figures overlook wider economic distress.

Modi, meanwhile, welcomed the 7.8% growth as evidence of India’s economic strength. He said the country had achieved the expansion despite global uncertainties, oil-price shocks and disruptions to supply chains.