Pune: Former Union finance minister Yashwant Sinha on Tuesday said that the crisis looming over the economy is the first real test for the National Democratic Alliance government in its 12-year tenure. Sinha stated that the agrarian economy will suffer badly if fertilisers are unavailable and rainfall is deficient. Unemployment is worsening, as evident from long lines for menial jobs, Sinha said in Pune. Former Maharashtra chief minister Prithviraj Chavan and other Congress members attended the dialogue.
Economic Distress and Government Response
The former finance minister said that the manifestations of global and domestic cues in the economy are evident in the paucity of resources for the people. Sinha likened the situation to undeclared rationing of fuel. He remarked, "The responsibility of bearing the brunt of economic distress is on the common man while the government is at ease and shying away from its duties."
Criticism of Foreign Policy
Sinha, who served as minister of external affairs under late Prime Minister Atal Bihari Vajpayee, was critical of the current government's foreign policy. He pointed out its failure to protest with the World Trade Organisation when the US imposed 50% tariffs on Indian goods, and its silence when the US deported illegal immigrants to India in handcuffs, showing lacunae in foreign policy.
Questioning Economic Data Authenticity
He also raised serious concerns about the authenticity of economic data released by the government. Citing a November 2025 report, he said that the IMF had assigned grade C to India for the quality of economic data. "In FY26, India reported a GDP growth rate of 7.7%, which puts it in the list of the fastest-growing economies in the world. Yet, several noted economists in the country believe that it is inflated by 4-5%. This puts the actual GDP growth rate at around 2.5%," he said.
Path to Developed Nation by 2047
While much is said about making India a developed country by 2047, Sinha added that the economy will have to grow at an average rate of 8% until then to achieve the goal.
