Congress Criticizes GDP Figures Amid 'Trump Tariff Shock'

The Congress expressed concerns over India's GDP growth figures for April-June 2025, attributing 'irrational exuberance' to misrepresentations. Congress general secretary Jairam Ramesh argued that the actual impact of Trump's tariffs would be felt in the next quarter. The nominal GDP growth is subdued, and consumption remains weak.

The Indian government came under fire from Congress on Monday regarding the GDP figures for the April-June 2025 period. The party accused the government of fostering 'irrational exuberance,' noting that the real consequences of the 'Trump tariff shock' will likely manifest in the upcoming quarter.

Congress general secretary Jairam Ramesh highlighted that the current GDP growth, though driven by export gains due to preemptive actions against tariffs, shows inconsistencies. A notable absence of consumption, investment, and trade as contributors to 1.8 percentage points in growth rate is a significant discrepancy he pointed out.

Ramesh foresees the true impact of tariffs surfacing in the next quarter, as the first quarter growth was primarily backed by a robust farm sector and service industry performance. The 7.8% GDP growth was seen as unsustainable in the face of looming export challenges from increased tariffs.

(With inputs from agencies.)