The Congress party accused the Modi government of worsening India’s “unemployment crisis” by crippling job-creating MSMEs through what they described as “Tughlakian demonetisation,” a hastily implemented GST and increased imports from China. He highlighted the Citigroup report that stated India needs to create 1.2 crore jobs annually for the next decade to employ its youth and said that the failing Modi economy is the root cause for exacerbating job losses.

In a statement, Congress General Secretary Jairam Ramesh, who oversees communications, cited a new report by Citigroup on India’s unemployment challenge and the “alarming numbers” that he claimed validated Congress’ stance during the recent election campaign.”For at least the past five years, the Indian National Congress has been sounding the alarm on India’s unemployment crisis. This crisis has been exacerbated by the decimation of job-creating MSMEs through ‘Tughlakian demonetisation,’ a hastily rushed GST, and rising imports from China,” Ramesh stated.

Unemployment challenge

Ramesh pointed out that according to the Citigroup report  “economic policies favouring large conglomerates, the non-biological prime minister has overseen the highest unemployment rate in 45 years, with the rate for graduate youth at 42 percent.”

“Even a 7 percent GDP growth rate won’t generate enough jobs for our youth. Under the current government, we’ve averaged just 5.8 percent GDP growth. The failing Modi economy is the root cause of the unemployment crisis,” Ramesh added.

He also noted that the 10 lakh central government job vacancies is not just a “travesty for our educated youth” but also a constraint on government functioning. Only 21 percent of India’s labour force has salaried jobs, which is lower than the 24 percent pre-Covid, according to Ramesh who was citing excerpts from the report.

K-shaped recovery favouring billionaires?

“The post-Covid recovery has been K-shaped, benefiting only the billionaire class, while the path to the salaried middle class is disappearing,” he claimed. Real wages in rural areas are decreasing by 1-1.5 percent annually, alleging that “Modi is making rural Indians poorer.”

The Citigroup report also suggests that many “overhyped Modi schemes” have delivered no tangible benefits and offers recommendations for reform, Ramesh said. 

He claimed that Skill India has been a complete failure, with only 4.4 percent of young Indians receiving any formal training. “A new skilling initiative is urgently needed – the Right to Apprenticeship promised in the Indian National Congress’s Nyay Patra is essential,” he added.

Many schemes need a relook says Jairam Ramesh 

Ramesh criticised the MUDRA and SVANIDHI schemes, stating they have failed to provide credit to small businesses and require a “large-scale revamp.” He emphasised the necessity of a “living wage” law, advocating for the Congress’s guarantee of a national minimum wage of Rs 400/day.

“India should be creating more jobs in the construction sector. The government should initiate a large-scale social housing program,” Ramesh further stated.

He concluded by saying, “The non-biological PM and his drumbeating economists have consistently attacked the idea of jobless growth. The reality of what we have seen since 2014 is perhaps even more stark – job loss growth.”

With inputs from PTI