The tweets are misleading in nature
As the world is well aware, Bharat is hosting a splendid G-20 summit in New Delhi this weekend. On the global stage, the nation has an array of noteworthy achievements to proudly showcase, and rightfully so. Bharat’s accomplishments in the realms of digital payments, the remarkable growth in mobile phone manufacturing, and its emerging presence in chip production are compelling narratives deserving of international attention. However, regrettably, there exists a faction that appears resistant to Bharat’s growth narrative. This contingent persistently endeavors to cast doubt on the nation’s achievements, painting a picture of a glass half empty, rather than recognizing the strides made.
A recent article published by Project Syndicate titled “India’s fake growth story” takes a critical stance on Bharat’s economic growth narrative. The Project Syndicate piece questions the credibility of Bharat’s GDP figures, attributing discrepancies to the fact that Bharat calculates GDP based on income rather than expenditure. Furthermore, the article highlights income inequality in Bharat and critiques the state of the country’s manufacturing sector.
Whenever Bharat’s economic performance faces criticism, a segment of our society eagerly seizes the opportunity to not only applaud the unfavorable perspectives but also actively propagate them.
Communist columnist Sagarika Ghose tweeted, “Bharat’s growth story is fake and based on cooking the books, says Princeton University professor.”
It’s worth mentioning that, in an effort to enhance the credibility of her tweet, Sagarika noted that the author of an article is a professor at Princeton University in the United States.
Ravi Nair, George Soros lapdog also tweeted, “ Modi govt is downplaying inconvenient macroeconomic facts to celebrate flattering headline figures while hosting the G20 summit. But by covering up the growing struggles of the vast majority of Bharatns, they are playing a cynical and dangerous game”
Another individual critical of Bharat, who also holds a position as a member of the Rajya Sabha, Jawhar Sircar, posted a tweet, “Mody versus Modi! Princeton Univ Prof Ashoka Mody shatters PM Narendra Modi’s Bharat-Growth Story as Fake! Prof re-calculates economic input statistics on US and International methodology and declares that Bharat’s GDP is not 7.8% but 4.5%!”
The following tweets are from individuals residing in Bharat who maintain a stance critical of the nation, and they actively share their viewpoints with individuals who also hold anti-Bharat positions.
Raising questions about Bharat’s GDP growth is one matter, but labelling it as a fabricated narrative represents an entirely distinct perspective. The Project Syndicate article has deeply affected the sentiments of countless hardworking individuals in Bharat who are dedicated to steering the nation towards the path of progress. This article has also cast doubt on the aspirations of our esteemed Prime Minister, who envisions Bharat as one of the world’s top three economies in the near future. As a result, it becomes imperative to subject this matter to a thorough fact-checking process.
We begin by addressing the most serious allegation put forth in the Project Syndicate article, which questions the integrity of Bharat’s GDP figures. The author of the article, Ashok Mody, has raised concerns regarding the methodology employed in calculating GDP data. Mody contends that GDP numbers should be derived using an expenditure-based approach, rather than the current income-based method. However, we aim to debunk this assertion by referencing a counter article authored by economic advisors from the Bharatn government. This article, which is published in Live Mint, offers a compelling rebuttal to the claims made in the Project Syndicate piece.
GDP Calculation Methodology
The fact-checking article makes an interesting point, ‘In Bharat, the way we organize our data systems makes it simpler to figure out our national income by looking at how much money people and businesses make rather than how much they spend. It’s easier to calculate someone’s income or the value they add to a product by subtracting what they put into it from what they get out of it, rather than trying to track all the money spent on different things in the whole country. We usually use the expenditure approach when we already have strong estimates of income. It’s also handy for studying different aspects of what people are buying.’
The Live Mint article further reads, ‘In the first quarter of the fiscal year 2023-24, there’s a difference of 2.8%, and it’s a positive difference, which means that the way we calculate how much money people spend doesn’t account for 2.8% of the money they actually make. But this doesn’t mean that this 2.8% doesn’t exist; it’s just not explained yet and will be in later quarters. In the past eight quarters, we had negative differences, which means we were trying to account for more spending than there actually was. Over a long time, these positive and negative differences balance out. Between the first quarter of fiscal year 2012 and the first quarter of fiscal year 2024, the average growth rate of the real GDP (quarterly) when calculated from both income and spending was 5.3% annually.’
Furthemore the article says, ‘ Back in the first quarter of 2020-21, when the official statistics showed that Bharat’s economy had shrunk by about 25%, nobody really questioned the accuracy of those numbers. This was because it was a significant contraction, and it suited those who were critical of the government. Now, when we see strong growth numbers in the first quarter of 2023-24, some people are claiming that they are exaggerated. However, it’s important to note that government statisticians have always calculated GDP growth based on the income approach, whether it’s higher or lower than the expenditure-based estimate. So, this isn’t a new way of doing things.’
The rebuttal from Bharat’s economic advisors regarding the calculation of GDP data effectively puts to rest the speculations raised. Live Mint aptly highlights the double standards exhibited by certain pseudo-economists who praise the GDP calculation methodology when it portrays negative figures but criticize it when the results are positive. Such hypocrisy deserves scrutiny, and it commendably aligns with the proactive stance taken by our nationalist economists. It’s worth applauding.
Income Inequality
The concept of income equality, often viewed through the lens of communism, is seen by some as an idealistic notion, while others consider it a fictional concept. Critics argue that communist ideals promote a vision where everyone is equally impoverished, with the elimination of luxury goods and resources. In situations where inequality in poverty arises, governments may intervene by offering assistance to equalize this shared hardship. Critics point to past instances, such as Venezuela, Cuba, and North Korea, as examples where the implementation of such philosophies has had detrimental consequences and led to economic hardships in these nations.
Be that as it may, anti-Bharat critics primarily focus on the Income inequality in Bharat. But let me remind our readers Income inequality is not a native concept but a global concept. According to International Monetary Fund data, “The first two measures are of wealth and income. As the chart below shows, current disparities are extreme. The poorest half of the global population owns just €2,900 (in purchasing power parity) per adult, while the top 10 percent owns roughly 190 times as much. Income inequalities are not much better. The richest 10 percent today snap up 52 percent of all income. The poorest half get just 8.5 percent.”
IMF data is just one example. World Bank data says the same. According to the World Bank’s latest report, “The global bottom 50% owns 2% of wealth (at Purchasing Power Parity). The global top 10% owns 76% of total Household wealth and captures 52% of total income in 2021.”
There is no denying the importance of striving to eliminate poverty, but it’s crucial to address the selective outrage surrounding income inequality in Bharat. While many aspire to the utopian ideals encapsulated in John Lennon’s song “Imagine,” practical feasibility remains a challenge in the real world. The pertinent question to ask is whether our country is ensuring access to basic necessities for marginalized communities. In this context, the world has taken notice of Prime Minister Modi’s initiatives aimed at uplifting impoverished and underprivileged Bharatians. Whether it’s the construction of sanitation facilities, the provision of affordable housing, or the distribution of essential food grains every month, the Modi government has garnered recognition for its efforts in these areas, standing tall on the global stage.
Bharat’s manufacturing sector
I will commence the fact-checking by quoting excerpts from Ashok Mody’s article, “ The dog that refuses to bark is manufacturing, the primary source of employment in every successful developing economy. Following decades of disappointing growth, Bharat’s post-COVID manufacturing performance has been particularly weak. This reflects the country’s chronic inability to compete in international markets for labor-intensive products – a problem made worse by the slowdown in world trade and weak domestic demand for manufactured products, owing to appalling income inequality.”
The strength of Bharat’s manufacturing sector has often been underestimated, largely due to geopolitical factors. One commonly cited reason is the West’s dissatisfaction with China, which has led some companies to relocate their manufacturing operations to Bharat. However, this narrative only scratches the surface. Bharat has, in fact, become a focal point for numerous global manufacturing firms. Assessing the nation’s manufacturing capacity also involves considering parameters such as the ease of doing business ranking. In this regard, we aim to present a compelling narrative supported by concrete facts.
The article from The Economic Times says, “Bharat likely to add 150k jobs this year in phone manufacturing.”
Business Insider article reads, “ More jobs added in manufacturing sector as July PMI shows healthy growth”
Speaking with Business Insider Andrew Harker, Economics Director at S&P Global Market Intelligence, said: “The Bharatn manufacturing sector showed little sign of losing growth momentum in July as production lines continued to motor on the back of strong new order growth. Pressure continued to come on capacity, prompting firms to expand employment solidly again, a trend that is likely to continue in the months ahead should demand remain strong. All in all, the Bharatn manufacturing sector has maintained its position as one of the star performers globally, bucking the trend of demand weakness seen in other parts of the world.”
According to the Financial Express, ‘Manufacturing employment increased by 5% in 2020-21 and 8% in 2021-22. This is noteworthy because manufacturing jobs had been declining since 2011, with a loss of three million jobs between 2011-12 and 2017-18. However, in 2020-21 and 2021-22, about eight million new manufacturing jobs were created, reversing the earlier trend. Despite the adverse effects of the Covid-19 pandemic on Bharatn MSMEs, the manufacturing sector managed to achieve significant employment growth during this period.’
We have effectively addressed all three arguments presented by Ashok Mody in his Project Syndicate article. It’s important to note that we’ve chosen to respond only to the arguments that merit thoughtful consideration, as there are others steeped in negativity. It’s disheartening that, despite global leadership within the G20 recognizing Bharat as a powerhouse, individuals like Ashok Mody persist in their efforts to disparage the entire nation. The timing of Project Syndicate’s article seems deliberate, aiming to invite criticism of Prime Minister Modi precisely when he is poised to present a promising future to the world. Nevertheless, their bitterness has ultimately fallen short, and Bharat has once again asserted its prominence on the global stage.
| Claim | Bharat’s GDP numbers are bogus, there are discrepancies in them |
| Claimed by | Ashok Mody, Sagarika Ghose, Ravi Nair and other anti- national elements |
| Fact Check | Ashok Mody, Sagarika Ghose, Ravi Nair and other anti-national elements |
The Only Fact India team’s goal is to dispel misinformation that are circulated with the objective of tarnishing anyone’s reputation by providing accurate and transparent news facts.
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