Sanyal Challenges Global Indices as 'Narrative Engineering' Against India
Sanjeev Sanyal, EAC-PM member, criticized global indices as 'narrative engineering' systems that use opaque methodologies to shape opinion against India, directly affecting capital flows and investment costs. He highlighted India's 2024 success in forcing World Bank withdrawal of governance indicators and advocated building credible Indian alternatives. Sanyal defended India's economic performance, dismissing 'jobless growth' claims with GDP growth near 7.00% and positive employment indicators, while calling for India to challenge established narrative frameworks.
*this image is generated using AI for illustrative purposes only.
Economist Sanjeev Sanyal has launched a sharp critique of global indices, arguing they represent a sophisticated system of "narrative engineering" designed to shape international opinion. The full-time member of the Prime Minister's Economic Advisory Council (EAC-PM) made these remarks during a podcast with ANI, challenging the credibility and impact of widely-cited international rankings.
The Mechanics of Global Opinion Shaping
Sanyal outlined what he describes as a carefully orchestrated process where global opinion is manufactured through interconnected institutions. According to his analysis, think tanks publish research that universities subsequently cite, media outlets amplify these findings, Wikipedia archives them as established facts, and rating agencies incorporate them into their assessments. This creates a self-reinforcing cycle where opinions gradually transform into accepted truths.
The economist specifically targeted popular global indices from organizations like Freedom House and V-Dem, along with press freedom rankings and governance scores. He criticized these systems for relying on opaque methodologies, unnamed experts, and subjective assessments, often originating from the same small circle of Western-funded institutions.
Economic Impact of Index Rankings
The implications extend far beyond academic debates, as Sanyal emphasized that these rankings directly influence capital allocation decisions. Investors, multilateral lenders, and rating agencies use these indices to determine investment destinations and funding costs. Countries receiving poor governance or democracy scores face higher borrowing costs or reduced capital access, creating tangible economic consequences.
| Impact Area: | Consequence |
|---|---|
| Investment Decisions: | Capital flow restrictions |
| Lending Terms: | Higher borrowing costs |
| Market Access: | Reduced funding availability |
| Economic Policy: | Constrained policy options |
India's Pushback Strategy
India achieved a significant victory in 2024 when the World Bank withdrew its World Governance Indicators following questions about their construction methodology and underlying expertise. Sanyal cited this as proof that these systems are not immune to challenge, though he acknowledged that confronting them requires substantial intellectual resources.
The EAC-PM member advocated for India to move beyond complaints and develop its own global-quality frameworks. This includes creating credible indices with transparent methodologies and establishing independent institutions capable of withstanding scrutiny. He highlighted an alternative sovereign ratings model developed through an Indian-owned agency, noting its superior performance in predicting recent credit events compared to established Western rating firms.
Defending India's Economic Performance
Sanyal strongly contested the "jobless growth" narrative, arguing that available data contradicts this characterization. He pointed to several indicators supporting job creation:
- GDP growth maintaining strength near 7.00%
- Positive employment survey results
- Rising EPFO enrollment numbers
- Strong consumption trend indicators
The economist defended economic disruption as a natural feature of healthy market dynamics. He argued that bankruptcies, firm failures, and market disruption represent creative destruction rather than systemic distress, emphasizing that successful companies should not face penalties for growth unless they abuse monopoly power.
Global Strategic Positioning
Regarding India's international position, Sanyal placed the country in the second tier of global powers alongside Europe and Japan, positioned below the United States and China. He advocated for a "multi-alignment" strategy that allows India to compete with China in certain areas while collaborating in others, avoiding rigid bloc alignments.
The Battle for Narrative Control
Sanyal framed the broader issue as a fundamental question of who controls reality definition in international discourse. He called for breaking inherited beliefs about India's historical passivity and emphasized that the struggle extends beyond policy implementation or economic statistics to encompass narrative control itself. According to Sanyal, India is finally learning to challenge established frameworks and assert its own perspective in global discussions.
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