In a fresh attack on the BJP-led government at the Centre, the Aam Aadmi Party (AAP) on Tuesday said the ruling dispensation’s “flawed’’ policies have led to continuous decline in the manufacturing sector in the country.

Addressing a press conference at the party headquarters here, AAP chief spokesperson Priyanka Kakkar said, “In 2014, Prime Minister Narendra Modi introduced the ‘Make in India’ scheme, spending more than Rs 450 crore for its promotion. The scheme aimed to contribute 25 per cent to the country’s GDP through manufacturing by 2022 and generate 10 crore jobs in this sector. However, everything happened contrary to this.”

Instead of creating 10 crore jobs in the manufacturing sector, the country is currently facing the highest unemployment in the last five decades, she claimed.

“In 2014, manufacturing contributed 17 per cent to the country’s GDP. Before the Covid pandemic in 2019, this contribution remained at 13.60 per cent. Despite that, there was a continuous decline in this sector. In 2022, this contribution remained at a mere 13.32 per cent. According to the World Bank, India’s manufacturing sector is in a severe crisis. After the New Economic Policy in 1991, there was considerable progress in the country due to liberalization policies, but all that progress has now been ruined,” Kakkar said, attacking the BJP government.

The Modi government’s flawed policies have led to continuous decline in manufacturing, increasing unemployment in the country, she asserted.

The AAP spokesperson further said, “In 2022, Finance Minister Nirmala Sitharaman stated in a television interview that she had provided PLI to manufacturers, which is incorrect. Foreign Direct Investment (FDI) has been on a continuous decline. The reduction in corporate taxes is only applicable to the .001 per cent. The PLI scheme failed terribly. While FDI in the country was at 2.4 per cent from 2004 to 2014, today it stands at 1.72 per cent.”

Talking about the MSME, Kakkar said, “MSMEs employ nearly 12 crore people in the country. Whatever contribution manufacturing has to the country’s GDP, the most significant comes from MSMEs. However, the central government has completely neglected MSMEs.

Claiming that the Central government has created such a difficult tax system and regulations for MSMEs that around 10,000 of them closed last year, she said,“Now, small entrepreneurs are reducing or closing their businesses. Its widespread impact is being felt on employment, leading to an increase in unemployment.”

She asserted that the government should seek advice from Delhi Chief Minister Arvind Kejriwal on economic matters as the national capital witnessed revolutionary changes after he assumed the post.