New Delhi: The Bharatiya Janata Party (BJP) leader Amit Malviya said on Thursday that Congress leader Rahul Gandhi’s claim about India heading towards an “economic tsunami” because the government has removed all shock absorbers “is not just wrong, it is classic fear-mongering.”
If India’s shock absorbers had truly been removed, why is the economy continuing to show resilience despite elevated crude prices, conflict in West Asia, supply-chain disruptions, global financial tightening and persistent geopolitical uncertainty? Malviya posted on X.
The BJP’s IT cell chief said that “the reality is exactly the opposite,” and shared statistics on the economy’s high-frequency indicators to support his argument.
E-way bill generation grew 11.8 per cent in April 2026 and 12.9 per cent in May 2026, reflecting strong economic activity while manufacturing PMI remained firmly in expansion territory at 54.7 in April and improved to 56.6 in May. Services PMI was even stronger at 58.8 in April and 58.9 in May, Malviya said.
He further stated that electricity consumption grew 3.5 per cent in April and 5.9 per cent in May, while urban auto sales rose 11.8 per cent in April, while rural auto sales grew an even stronger 13.8 per cent.
The BJP leader also said that retail inflation remained contained at 3.48 per cent in April — below the RBI’s 4 per cent target and highlighted that rice and wheat buffer stocks stood at 817.53 lakh tonnes at the end of April, providing a strong food security cushion.
He pointed out that gross FDI inflows touched a historic high of $94.5 billion in FY26 while forex reserves remain comfortable and provide insulation against global volatility. Besides, strong services exports continue to support external stability and narrow the trade deficit.
“These are not signs of an economy without shock absorbers. These are signs of resilience,” Malviya remarked.
The government has also taken direct measures to protect citizens, businesses and jobs. When global crude prices surged, excise duty cuts on petrol and diesel cushioned consumers. Supply-side interventions and export restrictions were used when necessary to protect domestic availability and contain inflation, he added.
Highlighting the measures taken by the government to help businesses at a time of crisis, Malviya said through the ‘ECLGS 5.0’, MSMEs receive 100 per cent guarantee coverage while non-MSMEs and airlines receive 90 per cent coverage. Additional credit support of up to 20 per cent of peak working capital, capped at Rs 100 crore, is available to eligible borrowers.
Airlines facing fuel-price volatility can receive assistance of up to Rs 1,500 crore per borrower. The objective is clear: protect jobs, sustain supply chains and ensure uninterrupted production, he added.
Simultaneously, the Cabinet has approved Rs 37,500 crore for surface coal and lignite gasification, targeting 75 million tonnes of gasification capacity and expected to mobilise investments worth Rs 2.5–3 lakh crore.
“These are not the actions of a government dismantling shock absorbers. These are the actions of a government actively strengthening them,” he quipped.
Malviya also highlighted that during the Congress-led UPA regime, the rupee plunge by 36 per cent between 2011 and 2013. Forex reserves declined from around $294 billion in July 2011 to approximately $256 billion in August 2013. Import cover fell to just over six months by September 2013, down sharply from 17 months in March 2004.
The RBI was forced to open the FCNR(B) window and offer attractive incentives to attract dollar deposits. India ultimately mobilised $26.6 billion through the scheme, roughly twelve times the size of the 1991 IMF bailout, he added.
The PM Modi government strengthened India before, during and after repeated shocks, Covid, the Russia-Ukraine conflict, crude spikes, global rate hikes, supply-chain disruptions and now instability in West Asia. Despite facing multiple black swan events, India has remained the world’s fastest-growing major economy, Malviya noted.
“Rahul Gandhi should stop selling panic. India is facing global headwinds, but it is facing them with stronger reserves, lower inflation, better infrastructure spending, stronger domestic demand, record FDI inflows, substantial food buffers and targeted support for MSMEs and industry,” he added.
(IANS)
