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Congress says India’s demand crisis result of sustained income stagnation

This is the fundamental reason behind India’s consumption slowdown,” Ramesh argued.

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The Congress on Sunday asserted that India was facing a demand crisis due to sustained income stagnation. It said the double engine of private investment and mass consumption, which drove a decade of continuous GDP growth under the UPA government, has been derailed during the past ten years of Prime Minister Narendra Modi’s government.

Jairam Ramesh, Congress general secretary in charge of communications, urged the government to adopt the Congress’s proposals, which include increasing MGNREGA wages to a minimum of Rs. 400 per day, ensuring a minimum support price (MSP) for farmers, implementing a loan waiver for farmers, and establishing a monthly income support scheme for women—steps he believes are essential to revive income growth in rural India.

Ramesh emphasised that the deterioration of India’s consumption patterns is becoming increasingly evident each day. He pointed out that last week, several CEOs from India’s corporate sector expressed concerns about a ‘shrinking’ middle class, and recent data from the NABARD’s All India Rural Financial Inclusion Survey (NAFIS) 2021-22 corroborates the claim that the demand crisis in India stems from income stagnation.

According to the survey, Ramesh highlighted that the average monthly household income ranges from Rs 12,698 to Rs 13,661 for agricultural households and approximately Rs 11,438 for non-agricultural households. “Assuming an average household size of 4.4, the per capita income in rural areas is estimated at Rs. 2,886 per month—less than Rs 100 a day. Consequently, a significant majority of Indians have very limited funds for discretionary spending beyond basic necessities,” he stated.

“This situation is hardly an isolated case; virtually all evidence leads to the same alarming conclusion: the average Indian can afford to buy less today than they could a decade ago. This is the fundamental reason behind India’s consumption slowdown,” Ramesh argued.

He cited data from the Labour Bureau’s Wage Rate Index, showing that real wages for labourers have stagnated between 2014 and 2023 and have even declined from 2019 to 2024. Furthermore, he referenced the Ministry of Agriculture’s statistics, stating that during Dr Manmohan Singh’s tenure, real wages for agricultural labourers grew by 6.8 per cent annually, whereas, under Modi, these wages have decreased by an annual rate of -1.3 per cent.

Ramesh also referred to the Periodic Labour Force Survey data, indicating that real earnings across all employment types—salaried, casual, and self-employed—have stagnated between 2017 and 2022. He included findings from the Centre for Labour Research and Action, asserting that the real wages of brick kiln workers have either stagnated or declined from 2014 to 2022.

“This decline in consumption is undermining our medium- and long-term economic potential, regardless of what quarterly GDP figures may indicate,” he maintained. He contended that without significant growth in consumption to create a viable market for their products, the private sector would be hesitant to invest in expanding production.

Ramesh pointed out that the government’s own Economic Survey (2024) acknowledged that private sector gross fixed capital formation (GFCF) in machinery, equipment, and intellectual property products has only increased by 35 per cent cumulatively over the four years leading to FY23. He noted a further decline in new project announcements by the private sector, which fell by 21 per cent between FY23 and FY24.

Recently, the Confederation of Indian Industry, the leading industry association, suggested that the government increase MGNREGA wages by 40 per cent, raise payments under the PM-KISAN scheme by one-third, and issue “consumption vouchers” for low-income citizens to use on specific goods and services over a six- to eight-month period.

Ramesh stated that these recommendations align with the proposals of the Indian National Congress outlined in its Nyay Patra for the 2024 Lok Sabha elections. These include raising MGNREGA wages to a minimum of Rs. 400 per day, ensuring MSP for farmers, providing a loan waiver for farmers, and establishing a monthly income support scheme for women. Ramesh called on the government to embrace these proposals to spur income growth in rural India after years of stagnation.

He reiterated that the dual forces of private investment and mass consumption that fueled the Congress-led UPA’s era of sustained GDP growth have been sidelined in the past ten years under the “non-biological PM.”

He emphasised it is time to restore this balance. Last week, the Congress also accused the government of deliberately undermining Micro, Small, and Medium Enterprises (MSMEs) through “careless policymaking, a disastrous demonetization, a flawed GST rollout, and an unplanned lockdown due to Covid-19,” attributing part of the departure from labour-intensive growth to these actions.

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Jharkhand Election Phase 1: 64.86% voter turnout till 5pm

Former Chief Minister and  BJP candidate Champai Soren is contesting against JMM rival Ganesh Mahali in the Seraikela seat

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Jharkhand Election Phase 1: 64.86% voter turnout till 5pm

As the first phase of the Jharkhand Assembly election for 43 seats concluded on Wednesday, the voter turnout stood at 64.86 per cent till 5 pm. The BJP-led NDA is looking to oust the JMM-led coalition in the state. Prime Minister Narendra Modi on Wednesday said that infiltration remains the biggest issue in Jharkhand.

The 43 seats where election is being held, are primarily located in the tribal-dominated South Chotanagpur, northern Palamu and Kolhan regions. Among the seats voting today, 20 are reserved for Scheduled Tribes (STs) and six for Scheduled Castes (SCs). Furthermore, Two of the seats, namely,  Chatra and Simaria are located in the state’s most backward district, also called Chatra. 

The BJP has offered 25 promises as part of its Sankalp Patra, addressing a range of issues such as infiltration, Uniform Civil Code, and the INDIA bloc has underlined seven guarantees in the fields of education, domicile policy, social justice, food, Maiyya Samman Yojna, jobs, and farmers welfare, replicating its model in Karnataka and Telangana.

While the BJP assured that the tribal identity will be fully preserved even though the party plans to implement the UCC in the state, the INDIA bloc has relied on the social justice plank, promising 28% reservation for tribals; 12% for Dalits and 27% for OBCs, alongside protection of the interests of the minorities in the state.

Meanwhile, in one of the major contests, former chief minister and  BJP candidate Champai Soren is contesting against JMM rival Ganesh Mahali in the Seraikela seat. Champai Soren’s son Babulal Soren has been fielded by the saffron party in Ghatsila, against JMM candidate and Jharkhand Cabinet minister Ram Das Soren. Former Congress CM Madhu Koda’s wife, former MP Geeta Koda, will be contesting on a BJP ticket against sitting Congress MLA Sona Ram Sinku in Jaganathpur. Former BJP CM and ex-Union minister Arjun Munda’s wife Meera Munda is in the fray against sitting MLA Sanjib Sardar in Potka.

The second phase of the Jharkhand Assembly Election will take place on November 20. The results for the election will be declared on November 23.

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Delhi Pollution: BJP demands closure of schools in national capital, says AAP government utterly failed

Delhi BJP president Virendra Sachdeva said that both private and government schools should be shut down for the safety of children, given the alarming level of air pollution in the national capital and its adjoining regions.

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Delhi Pollution: BJP demands closure of schools in national capital, says AAP government utterly failed

As Delhi continues to choke with hazardous air pollution, the BJP on Wednesday demanded the AAP government to urgently close all schools up to Class 5. They also slammed the Delhi government for allowing the city to devolve into a gas chamber.

In a press conference, Delhi BJP president Virendra Sachdeva said that both private and government schools should be shut down for the safety of children, given the alarming level of air pollution in the national capital and its adjoining regions.

He added that children and the elderly are particularly vulnerable to the impacts of air pollution. He also pointed out the lack of government clinics providing essential treatments to mitigate these dangers.

The Delhi BJP President emphasised that the AAP government has utterly failed to manage pollution levels in the national capital, mentioning that PM 2.5 concentrations have soared beyond 400 and PM 10 levels exceeded 1,000. Virendra Sachdeva said that Delhi is now a gas chamber where people are choking and suffering from respiratory issues.

Delhi saw its first dense fog of the season on Wednesday, with air quality recorded as very poor. As per the real-time data from the Central Pollution Board (CPCB), the air quality index has surged to 366. 

The India Meteorological Department (IMD) stated that the pollution had reduced visibility to 100 metres (328 feet) in some places by around 8 a.m. It said the city’s temperature dropped to 17 degrees Celsius (63 degrees Fahrenheit) on Wednesday morning from 17.9 C on Tuesday and may fall further as sunlight remains cut off due to the smog.

Notably, the second stage of Graded Response Action Plan remains in force in the national capital, which entails mechanical sweeping and water sprinkling on identified roads, and implementation of dust control measures at construction and demolition sites.

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Election Commission officials check CM Eknath Shinde’s bag amid Uddhav Thackeray’s allegation

The Chief Minister’s bags were checked after his helicopter landed at the Palghar Police ground helipad.

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Election Commission officials check CM Eknath Shinde’s bag amid Uddhav Thackeray’s allegation

The Election Commission on Wednesday checked Maharashtra Chief Minister Eknath Shinde’s bag amid Uddhav Thackeray’s allegation.

The Chief Minister’s bags were checked after his helicopter landed at the Palghar Police ground helipad. The action followed after Shiv Sena (UBT) chief Uddhav Thackeray questioned the election panel after his bags were checked by officials. The Shiv Sena (UBT) chief said his bags had been inspected by the election authorities after he arrived in Latur and Yavatmal districts over the last two days.

He asked the Election Commission officials if the same action will be taken against Prime Minister Narendra Modi, Home Minister Amit Shah and Maharashtra Chief Minister Eknath Shinde.

Addressing a public meeting in Wani, Uddhav Thackeray said that he is not angry with the ECI officials as they were doing their duty, and questioned whether they check the bags of Prime Minister Narendra Modi, Home Minister Amit Shah, Chief Minister Eknath Shinde, Deputy CM Ajit Pawar and Devendra Fadnavis.

Reacting to the allegations, Deputy CM Devendra Fadnavis said that Uddhav Thackeray was trying to divert the attention by needlessly protesting against the checking of his bags by poll officials and was seeking votes by whining.

The Deputy Chief Minister questioned what is wrong in checking bags, adding that their bags were also checked during campaigning, and that there was no need for this level of frustration. He mentioned that the Election Commission officials followed the same procedure with his campaign team too.

Earlier in the day, bags of deputy chief minister Devendra Fadnavis, Ajit Pawar were also checked by EC officials in Baramati. The Maharashtra BJP had also posted a video on X showing officials checking Devendra Fadnavis’ bags.

The Maharashtra Assembly Election will be held on November 20. The counting of votes will take place on November 13.  

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