New Delhi: The Congress on Wednesday claimed that it is becoming clear that the “disappointing” Quarter 2 GDP growth numbers are not a blip but a clear slowdown in the economy and the post-pandemic bump is not broad-based enough to power long-term growth.
Congress general secretary in-charge communications Jairam Ramesh cited an article in a newspaper which claimed that the fallout of limited job creation and muted wage growth can be seen in the greater recourse to debt.
Ramesh said the article confirms the growing concerns on the Indian economy.
“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 said.
The post-pandemic bump in growth was driven by a service exports boom and its knock-on effects – but this is not broad-based enough to power long-term growth, Ramesh said, citing the article.
“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 said.
“The failure of Make in India and PLIs, the country’s mass unemployment crisis, and the decade-long wage stagnation is beginning to reflect in increasing household indebtedness, poor macro-economic outcomes, and sluggish investment,” Ramesh said.
India’s economic growth slowed to near two-year low of 5.4 per cent in the July-September quarter of this fiscal due to poor performance of manufacturing and mining sectors, but the country continued to remain the fastest-growing large economy,
Congress leader Rahul Gandhi on Tuesday had also hit out at the Modi government over its economic policies and asserted that real development is when everyone progresses, there is a fair environment for business, a fair tax system and the income of workers increases.
Gandhi on Sunday had announced the launch of a ‘White T-shirt Movement,’ championing the rights of the masses. He had accused the Narendra Modi government of turning its back on the poor. The Congress leader had announced the launch in a post on X and urged people to be a part of it.
“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.
The Congress has been attacking the government over its handling of the economy, claiming the issues of rising prices, decreasing private investment and stagnating wages are hitting the common people hard.
