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The All India Congress Committee’s (AICC) research department on Tuesday, January 27, released its flagship annual report titled ‘Real State of the Economy 2026’.
The report points to rising inequality, increasing unemployment, and the receding welfare initiatives, which it argues is a defining feature of India’s current economy under the Bharatiya Janata Party (BJP) led Union government.
The report was released by former MP and chairman of AICC Professor Rajeev Gowda along with AICC in-charge of research and monitoring, Amitabh Dubey, in coordination with the AICC’s communications department.
Speaking at the launch, Professor Gowda said the report exposes the priorities of the PM Modi-led government at a time when inequality is worsening and welfare support is being curtailed. He argued that while corporate profits are rising, meaningful job creation has stalled and social safety nets for the poor, youth, farmers, and women are being dismantled. He also raised concerns about the credibility of official economic data, warning against “triumphalist propaganda”.
Echoing Professor Gowda’s statement, Amitabh Dubey argued that economic growth that benefits only a few cannot be considered success. He described rising inequality and shrinking welfare as markers of economic mismanagement and urged the government to place “honest numbers” before the public instead of “manipulated data”.
The report flags serious concerns about official macroeconomic statistics, noting that the IMF has graded India’s data quality as “C” and that former chief economic adviser (CEA) Arvind Subramanian has argued GDP growth may be overstated by around 2.5 percentage points.
On external indicators, the report notes that the Indian rupee was Asia’s worst-performing currency in 2025 and continues to weaken in 2026.
The report also discusses employment trends in India under the BJP-led government. The AICC’s report argues that between 2017–18 and 2023–24, manufacturing and services both saw a fall in their share of employment, while agriculture absorbed more workers, signalling a reversal of structural transformation.
“Job growth is largely confined to informal and gig work, with nearly 40% of salaried workers lacking contracts, paid leave, or social security. Corporate profits rose by over 22% in 2023–24, while employment grew by only 1.5%. Youth unemployment stood at 15% in September 2025 and was significantly higher in urban areas, particularly among young women,” the report adds.
The report documents a sharp rise in inequality, with the top 10% earning 58% of national income while the bottom half earns just 15%. It also notes a shift in the tax burden from corporates to individuals and highlights cuts to welfare spending, including food security and rural employment. It argues that the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was systematically weakened before being replaced by a budget-capped scheme that removes the legal right to work, with average employment falling well below the guaranteed 100 days.
The report also discussed malnutrition, child stunting, and anaemia, alleging that it remains widespread, while public spending on health and education remains low. According to the AICC report, school enrolment has declined, teacher vacancies persist, higher education funding has fallen sharply, and student suicides have risen significantly.
It also criticises policies affecting the elderly, women, and persons with disabilities, pointing to stagnant pensions and reduced allocations under the National Social Assistance Programme.