Modi Government Ignores 12-Year Economic Red Flags at PMEAC Meeting
Updated
Updated · Onmanorama · Jun 10
Modi Government Ignores 12-Year Economic Red Flags at PMEAC Meeting
1 articles · Updated · Onmanorama · Jun 10
Summary
A recent PMEAC meeting largely sidestepped slowing growth, capital outflows, weak private investment and high youth unemployment, portraying the government as still in denial about the economy’s condition.
Discussion instead centered on adding momentum to reforms, “ease of living” and “ease of doing business,” despite rising living costs, stagnant or declining informal-sector activity and credit growth driven heavily by consumption.
The critique says the government has failed to revisit past policies such as the nearly 8-year-old demonetisation drive, while inequality and weak job absorption in both formal and informal sectors remain unaddressed.
It also argues India’s economic institutions have been compromised, with national accounts and statistical systems increasingly questioned and NITI Aayog accused of reinforcing a politically convenient narrative.
The broader warning is that persistent denial is obscuring deeper strains, including RBI intervention to slow the rupee’s slide and what the article calls the weakest-performing currency in Asia.
Is India sacrificing economic stability and a strong rupee for a majoritarian political agenda?
Can India become a $5 trillion economy if its official data and regulatory promises cannot be trusted?
As India's digital economy booms, why are millions being left behind by rising inequality and fraud?
India’s 2026 Economy: 7.7% GDP Growth Target Faces Criticism Over Inequality, Data Credibility, and External Pressures
Overview
In early June 2026, the Prime Minister's Economic Advisory Council (PMEAC) met to review India's economic performance and set the official outlook. The government projected strong growth, with real GDP expected to reach ₹323.12 lakh crore for FY 2025-26, reflecting a 7.7% annual increase from the previous year's ₹299.89 lakh crore. This optimistic assessment shapes ongoing policy priorities and reforms, emphasizing sustained growth and macroeconomic stability. The official outlook forms the foundation for government strategies, even as debates continue about the accuracy and inclusiveness of these projections.