Bengaluru, September 4 (Daily Kiran) : Karnataka’s Deputy Chief Minister G. Parameshwara raised concerns on Friday about the central government’s celebration of India’s high GDP growth rate. He emphasized that the benefits of economic development must reach the common people. According to him, the nation requires more than just a high GDP figure; it needs improved employment opportunities, higher income, and economic security.
In a statement titled “Development should reach every Indian, not just GDP figures,” Parameshwara argued that a high GDP rate cannot be seen as a certificate of prosperity. He demanded clarity from the central government regarding employment, per capita income, the manufacturing sector, and the purchasing power of families.
Parameshwara also questioned the new GDP base year and methodology adopted from 2011-12 to 2022-23, as well as the data sources and estimation methods used. He called for an independent review and greater transparency concerning the high growth rates being reported in the wake of the economic downturn caused by the COVID-19 pandemic.
“GDP figures do not equate to prosperity. Despite being one of the fastest-growing major economies, India’s per capita income remains significantly low,” he stated. He referenced the International Monetary Fund (IMF) estimate predicting India’s per capita GDP to be around $2,813 in 2026, which is lower than Bangladesh’s projected $2,911.
Parameshwara urged the central government to explain the implications of a 7-8% economic growth rate for youth struggling to find jobs that match their qualifications, families facing purchasing power pressures, and those reliant on low-paying or unstable employment.
He stressed the need for job-centric development in India, advocating for manufacturing that creates millions of jobs, strengthens micro, small, and medium enterprises (MSMEs), increases wages, and provides opportunities for educated youth.
The Deputy Chief Minister also expressed concern over India’s external economic situation. He noted that in the first quarter of the fiscal year 2026-27, the current account deficit stood at $4.2 billion, while the trade deficit reached $86.1 billion. The trade deficit had surged to $333.19 billion in 2025-26.
Parameshwara highlighted that the Indian economy remains sensitive due to fluctuating oil prices, geopolitical tensions, reliance on imports, and disruptions in global trade. He pointed out that plans like “Make in India” and “Atmanirbhar Bharat” still see significant dependence on imports in crucial sectors.
He concluded by stating that economic growth should enhance India’s economic sovereignty. Referring to Karnataka’s economic performance, he mentioned that the state has presented a sustainable development model through technology, innovation, human resources, entrepreneurship, manufacturing, and global partnerships.
“India needs more than just high GDP. We require increased income, better jobs, strong exports, competitive manufacturing, and economic security,” Parameshwara said. He emphasized that the true measure of economic progress is whether development is inclusive and sustainable, bringing real improvements to the lives of ordinary Indians, rather than being confined to GDP statistics.
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