2 February, Posted on 3:12 AM
Over the past decade, the Indian government has projected the economy as fast-growing and resilient. However, rising unemployment, a weakening rupee, and inflation have raised questions about whether this growth is translating into real benefits for ordinary citizens.
For nearly ten years, official statements, budget speeches, and economic surveys have highlighted India’s growth trajectory, often describing the country as an emerging global economic power. Gross Domestic Product (GDP) figures have been repeatedly cited as evidence of strong performance and policy success.
According to official data referenced in the discussion, GDP growth for the 2025–26 financial year stood at around 7.4 percent, with projections for the following year ranging between 6.8 and 7.2 percent. The Economic Survey attributes this expansion largely to government spending on infrastructure and tax-related incentives. However, several labour force surveys and independent economic studies suggest that employment generation has not kept pace with this growth.
Youth unemployment remains a significant concern in multiple states, with rates reportedly in double digits in some regions. The promise of creating two crore jobs annually, made during the 2014 election campaign, continues to be raised in public discourse, with critics questioning its implementation and outcomes. These claims remain politically contested and require verification through official employment data.
Another area of concern is the depreciation of the Indian rupee. A weaker currency directly impacts imports, fuel prices, and inflation, thereby affecting household purchasing power. While the government has argued that a weaker rupee can boost exports, critics argue that the immediate burden falls on consumers through higher prices of essential goods.
Major initiatives such as “Make in India,” “Skill India,” and “Atmanirbhar Bharat” were launched to strengthen domestic manufacturing and employment. While investment has increased in certain sectors, large-scale job creation, particularly in manufacturing and the unorganised sector, remains limited. The informal sector, considered the backbone of the Indian economy, is still recovering from disruptions caused by demonetisation, GST implementation, and the COVID-19 pandemic.
Global factors have also played a role. Trade tensions, international monetary policies, and foreign investor withdrawals have contributed to market volatility and currency pressure. These developments highlight the economy’s vulnerability to external shocks despite internal reforms.
While official narratives continue to focus on growth indicators, critics argue that economic success must be measured through employment, price stability, and overall public welfare. The gap between policy claims and everyday experiences remains a key issue in the ongoing debate over India’s economic direction.
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