Debunking 15 Myths About Indian Economy: Check Common Political Allegations & Facts
The ruling Bharatiya Janata Party's (BJP) has released a document debunking 15 common myths surrounding the Indian economy.
The Indian economy remains the fast-growing one in the past few years, despite being slowed in the past few months. However, in the political realm of economic discourse, misinformation often spreads as quickly as facts. A variety of myths have gained traction over the years in the political debates.
The ruling Bharatiya Janata Party’s (BJP) has released a document debunking 15 common myths surrounding the Indian economy.
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Myth 1: PM Modi Promised 2 Crore Jobs a Year, but Instead, There is Massive Job Destruction
While employment growth was sluggish under the UPA (2004-2014), with only 2.9 crore jobs created in a decade, the NDA government has generated 17.9 crore jobs, including 4.6 crore in 2023-24 alone. The female workforce participation rate has also surged from 23.3% in 2017-18 to 37% in 2022-23. Additionally, the startup ecosystem has flourished, generating 17.2 lakh jobs.
Myth 2: India Has Been Pushed Into a Middle-Income Trap
The claim that India’s GDP growth under BJP has averaged only 6% ignores key economic shifts. The NDA’s average GDP growth from 2014 to 2024 stands at 8.4%, compared to UPA’s 6.8%. Digital transactions have surged from 2.2 billion in 2013-14 to 208.5 billion in 2024, reflecting a more robust economy.
Myth 3: Real Wages Have Declined, Household Savings are at a 47-Year Low
The decline in household savings is due to increased investment in real estate and automobiles, rather than financial stress. Average household spending on food has reduced because of rising incomes. Additionally, the per capita income has risen from ₹86,647 in 2014 to ₹2.2 lakh in 2024.
Myth 4: India’s Exports Have Declined Under the Modi Government
The share of exports in GDP dipped during the pandemic but rebounded to 21.85% in 2022-23. Total exports hit a record $776 billion in FY 2022-23, compared to $472 billion under UPA in 2013. India has also emerged as a major manufacturing hub, with Apple alone exporting $12.8 billion worth of iPhones in 2024.
Myth 5: India’s Industrial Reliance on China Has Increased
While imports from China have grown, India’s manufacturing sector has expanded significantly, reducing dependence on Chinese components. Policies such as “Make in India" and PLI schemes are strengthening domestic manufacturing, with the electronics sector expected to reach $300 billion by 2025-26.
Myth 6: Investments Have Dropped Under Modi Government
Gross Fixed Capital Formation (GFCF) increased from ₹32.78 lakh crore in 2014-15 to ₹54.35 lakh crore in 2022-23. Additionally, private sector investments have nearly doubled post-COVID, rising from ₹3.9 lakh crore annually (2019-2023) to ₹6.5 lakh crore (2024-2028).
Myth 7: The Modi Government Has Cut Social Safety Nets
Welfare spending has surged, with government expenditure on social services growing at a 15% CAGR since 2021. The PM-KISAN scheme alone has disbursed ₹3.46 lakh crore to over 11 crore farmers.
Myth 8: India’s Global Hunger Index Rank Has Worsened
The Global Hunger Index (GHI) is based on flawed methodology, relying on small sample sizes and indirect indicators. NFHS-5 data shows improvements in childhood nutrition, with stunting dropping from 38.4% to 35.5%.
Myth 9: MGNREGA Has Been Weakened
The Modi government has ensured full funding for MGNREGA, spending more than the budgeted allocation. During the COVID-19 pandemic, funding was increased by 55% to support rural employment.
Myth 10: Manufacturing Growth Has Stalled
Manufacturing growth under the NDA has averaged 5.8%, but sectors like electronics and pharmaceuticals have boomed. Mobile phone exports have reached ₹45,700 crore, making India the world’s second-largest mobile phone exporter.
Myth 11: Agriculture Sector Growth Has Plummeted
The agriculture sector has maintained a steady average growth of 5% from FY17 to FY23. MSP payments have consistently increased, and the PM-KISAN scheme has supported farmers with direct income transfers.
Myth 12: Inflation Has Risen Faster Than Incomes
Inflation under the UPA averaged 8.2%, compared to just 5.1% under the NDA. The Modi government has managed fuel prices and food inflation effectively, keeping costs in check despite global challenges.
Myth 13: India’s Billionaires Have Benefited at the Cost of Public Banks
The growth of industrial giants like Adani has been market-driven, not due to preferential treatment. Public sector banks have recovered from the NPA crisis caused during the UPA years, with record profits of ₹1.41 trillion in 2023-24.
Myth 14: Institutions Like SEBI and RBI Have Been Undermined
The NDA has strengthened financial institutions. The Insolvency and Bankruptcy Code (IBC) has successfully resolved ₹3.61 lakh crore worth of bad loans, and RBI autonomy has been maintained.
Myth 15: The BJP Government Manipulated Highway Construction Data
The highway network has expanded by 60% from 2014 to 2023, compared to just 39% under the UPA. The pace of national highway construction has increased from 12 km/day in 2014 to 34 km/day in 2023-24.
The full document can be read here.
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