Are GDP Growth Figures Fake?

India has reported GDP growth of 7.8% for the quarter ending June. But can one headline number capture the health of an economy as complex as India’s? In this analysis, Debashis Basu examines the growing debate over India’s GDP methodology, the challenges of measuring economic activity, and the question of whether the latest growth figures fully reflect what is happening on the ground. The discussion looks beyond GDP to a range of indicators—including GST collections, advance-tax payments, electricity consumption, exports and investment—to assess whether the economy is genuinely expanding strongly. But there is one crucial piece of the puzzle: consumption. With consumption accounting for around 63% of India’s GDP, sustained growth ultimately depends on people having greater purchasing power. Yet real wages, particularly for self-employed and salaried workers, have faced prolonged pressure even as corporate profits have risen. So, is India’s 7.8% GDP growth figure credible? Or are there important aspects of the economy that the headline number does not capture? Hosted on Acast. See acast.com/privacy for more information.