The Bharatiya Janata Party (BJP) has published a document addressing and debunking 15 prevalent myths about the Indian economy.
The Indian economy has remained one of the fastest-growing globally in recent years, despite a slowdown in recent months. However, in economic discussions, misinformation often spreads as rapidly as verified facts. Over time, several myths have gained prominence in economic debates. To address this, the ruling Bharatiya Janata Party (BJP) has released a document aimed at debunking 15 widespread myths about the Indian economy.
Myth 1: PM Modi Promised 2 Crore Jobs Annually, but Instead, Massive Job Losses Have Occurred
During the UPA era (2004-2014), employment growth was sluggish, with only 2.9 crore jobs created over a decade. In contrast, the NDA government has generated 17.9 crore jobs, including 4.6 crore in 2023-24 alone. The female workforce participation rate has also risen significantly, increasing from 23.3% in 2017-18 to 37% in 2022-23. Furthermore, the thriving startup ecosystem has created 17.2 lakh jobs.
Myth 2: India Has Been Pushed Into a Middle-Income Trap
The claim that India’s GDP growth under the BJP has averaged only 6% overlooks significant economic transformations. From 2014 to 2024, the NDA government achieved an average GDP growth of 8.4%, surpassing the UPA’s 6.8%. Additionally, digital transactions skyrocketed from 2.2 billion in 2013-14 to 208.5 billion in 2024, showcasing a stronger and more dynamic economy.
Myth 3: Real Wages Have Declined, Household Savings are at a 47-Year Low
The decline in household savings is attributed to higher investments in real estate and automobiles, rather than financial strain. Rising incomes have also led to a decrease in the proportion of household spending on food. Moreover, per capita income has increased significantly, 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 declined during the pandemic but recovered to 21.85% in 2022-23. Total exports reached a record $776 billion in FY 2022-23, up from $472 billion under the UPA in 2013. Additionally, India has become a key manufacturing hub, with Apple alone exporting $12.8 billion worth of iPhones in 2024.
Myth 5: India’s Industrial Reliance on China Has Increased
Although imports from China have increased, India’s manufacturing sector has grown substantially, reducing reliance on Chinese components. Initiatives like “Make in India” and the PLI schemes are bolstering domestic manufacturing, with the electronics industry projected to reach $300 billion by 2025-26.
Myth 6: Investments Have Dropped Under Modi Government
Gross Fixed Capital Formation (GFCF) grew from ₹32.78 lakh crore in 2014-15 to ₹54.35 lakh crore in 2022-23. Furthermore, private sector investments have almost doubled since the COVID-19 pandemic, increasing from ₹3.9 lakh crore per year (2019-2023) to ₹6.5 lakh crore (2024-2028).
Myth 7: The Modi Government Has Cut Social Safety Nets
Welfare spending has significantly increased, with government expenditure on social services growing at a compound annual growth rate (CAGR) of 15% since 2021. The PM-KISAN scheme alone has distributed ₹3.46 lakh crore to more than 11 crore farmers.
Myth 8: India’s Global Hunger Index Rank Has Worsened
The Global Hunger Index (GHI) employs a flawed methodology, relying on limited sample sizes and indirect indicators. According to NFHS-5 data, childhood nutrition has improved, with stunting rates decreasing from 38.4% to 35.5%.
Myth 9: MGNREGA Has Been Weakened
The Modi government has fully funded MGNREGA, often exceeding the budgeted allocation. During the COVID-19 pandemic, funding was increased by 55% to bolster rural employment.
Myth 10: Manufacturing Growth Has Stalled
Under the NDA, manufacturing growth has averaged 5.8%, with sectors like electronics and pharmaceuticals experiencing significant expansion. Mobile phone exports have surged to ₹45,700 crore, establishing India as the world’s second-largest exporter of mobile phones.
Myth 11: Agriculture Sector Growth Has Plummeted
The agriculture sector has sustained an average growth rate of 5% between FY17 and FY23. MSP payments have steadily risen, while the PM-KISAN scheme has provided farmers with direct income support.
Myth 12: Inflation Has Risen Faster Than Incomes
Inflation averaged 8.2% under the UPA, compared to 5.1% under the NDA. The Modi government has effectively managed fuel prices and food inflation, maintaining stable costs despite global challenges.
Myth 13: India’s Billionaires Have Benefited at the Cost of Public Banks
The rise of industrial giants like Adani has been driven by market dynamics rather than preferential treatment. Public sector banks have overcome the NPA crisis from the UPA era, achieving record profits of ₹1.41 trillion in 2023-24.
Myth 14: Institutions Like SEBI and RBI Have Been Undermined
The NDA has bolstered financial institutions, with the Insolvency and Bankruptcy Code (IBC) facilitating the resolution of ₹3.61 lakh crore in bad loans while ensuring the autonomy of the RBI remains intact.
Myth 15: The BJP Government Manipulated Highway Construction data
The highway network grew by 60% between 2014 and 2023, surpassing the 39% growth achieved under the UPA. The rate of national highway construction has accelerated from 12 km per day in 2014 to 34 km per day in 2023-24.
The full document can be read here.
