The Congress on Wednesday expressed concern over what it describes as India’s “precarious and challenging” economic situation under the BJP-led government, which has governed for over a decade now.
Highlighting the current state of the economy, Congress General Secretary in-charge of Communications, Jairam Ramesh said: “India is in its most precarious and difficult economic situation in many years. Wage stagnation, inflation, and inequality are not just political issues—they are structurally corrosive to India’s long-term growth prospects. These issues erode India’s consumption growth and weaken the private sector’s incentive to invest.”
Ramesh warned that these trends would stifle growth if they are not addressed with humility and urgency.
Reflecting on previous decades, Ramesh noted: “For the past three decades, India’s growth story was marked by consumption expansion, with millions of families moving out of poverty into the middle class, able to afford new products and build assets. This was a sign of a flourishing economy, one that was growing rapidly and sharing its gains broadly.”
The Congress leader asserted that, over the past 10 years, India’s consumption growth has reversed, becoming a significant obstacle for the economy.
He further pointed to stagnant wages, high inflation, and widening inequality as contributors to a shrinking middle class. Citing data from multiple sources, including the government’s Annual Survey of Industries (ASI) 2022-2023, Ramesh claimed: “Workers today can purchase less than they could a decade ago.”
“These stagnant wages may be tied to a decline in labor productivity in India. As productivity falls and real wages stagnate, families will have less disposable income to drive consumption,” Ramesh added.
The Congress leader alleged that recent price hikes are directly linked to the government’s cronyism and favoritism toward select conglomerates.