The Congress party on Wednesday criticized the government’s handling of the economy, asserting that the “disappointing” Quarter 2 GDP growth numbers are indicative of a broader economic slowdown rather than a temporary setback. Party general secretary in-charge of communications, Jairam Ramesh, pointed to an article highlighting the negative impact of limited job creation and stagnant wage growth, suggesting that increased reliance on debt is a sign of deeper economic distress.
Ramesh reiterated that the article asserts the growing concerns on the Indian economy. He said,”It is becoming clear that the disappointing Q2 GDP growth numbers aren’t a blip but a clear slowdown in the economy. The Government’s attempts to pass the buck on to the RBI’s interest rate regime and foreign exchange market interventions is an attempt to escape responsibility.”
He further slammed that post-pandemic growth surge was initially fueled by a boom in service exports and its subsequent effects, this growth is not broad-based enough to sustain long-term economic progress. He referenced the article to support his claim.
He said,”The middle class is shrinking. The shift in the automotive industry is clear evidence: the low-priced, small car markets (the sub Rs 10 lakh segment) earlier accounted for 73% of all car sales and now accounts for only 46% of cars sold. Growth is coming only from the premium end of the market, reflecting high inequality.”
He criticised initiatives like Make in India and PLI schemes and said that increase in household indebtedness, poor macroeconomic outcomes and sluggish investment reflects in the unemployment crisis and a decade long wage stagnation.
India’s economic growth slowed to a near two-year low of 5.4 per cent in the July-September quarter due to weak manufacturing and mining performance, though it remains the fastest-growing major economy. Congress leader Rahul Gandhi criticized the Modi government’s economic policies, stating that real development occurs when everyone benefits, with a fair business environment, tax system, and increased worker income.
On Sunday, Gandhi launched the ‘White T-shirt Movement’ to advocate for the rights of the masses, accusing the Modi government of neglecting the poor. He encouraged people to join the movement through a post on X.
“If you believe in economic justice, oppose rising wealth inequalities, fight for social equality, reject all forms of discrimination, and strive for peace and stability in our country, wear your white T-shirts and join the movement,” said the video voiceover posted by Gandhi on X.
(With PTI Inputs)