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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.

India News

President’s Rule revoked in Manipur as NDA set to form new government

President’s Rule has been withdrawn in Manipur nearly a year after its imposition, paving the way for a new NDA-led government under Yumnam Khemchand Singh.

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President rule invoked in Manipur

President’s Rule has been revoked in Manipur nearly a year after it was imposed, clearing the way for the formation of a new government led by the BJP-led National Democratic Alliance (NDA). The decision came hours before the scheduled oath ceremony of the new council of ministers.

Chief minister-designate Yumnam Khemchand Singh is set to take oath later this evening, along with other NDA legislators who will formally join the new government. The revocation brings an end to central rule that had been in place since February 2025, following the resignation of then chief minister N Biren Singh.

Assembly status during central rule

During the period of President’s Rule, the Manipur Legislative Assembly remained in suspended animation, meaning it was neither functioning nor dissolved. With the restoration of the elected government, legislative activity is expected to resume.

Khemchand Singh, 61, belongs to the Meitei community. Two deputy chief ministers have been named to reflect Manipur’s ethnic diversity. Nemcha Kipgen, from the Kuki community, and Losii Dikho, from the Naga community, are set to take charge as deputy chief ministers.

According to people with direct knowledge of the matter, Nemcha Kipgen is likely to take oath from a Manipur government guesthouse in Delhi.

Key portfolios and leadership choices

Seven-time MLA from Bishnupur district, Govindas Konthoujam, said he has been entrusted with the Home portfolio. Emphasising stability and law and order, he said he remains committed to serving the state with discipline and restraint.

Sources said Khemchand Singh is viewed within the party as a non-polarising leader who is acceptable across internal factions at a time of political transition. While he is yet to be tested in governance, he is seen as a steady administrative choice capable of providing organisational discipline and continuity amid uncertainty.

Uneasy peace continues in Manipur

The formation of the new government comes against the backdrop of continued tension in Manipur, nearly three years after violence erupted between the Meitei community in the valley areas and the Kuki tribes in several hill districts.

A section of Kuki groups has been demanding a separate administrative arrangement, with negotiations involving multiple insurgent groups operating under two umbrella organisations that are signatories to the suspension of operations agreement.

In recent weeks, some Kuki civil society organisations have stated they would not participate in the Manipur government and have distanced themselves from Kuki MLAs expected to join the new administration.

A day before the announcement of the new government, Kuki leader Paolienlal Haokip posted on X that representatives of the Kuki Zo people could not take part in leadership selection without justice and a written commitment for political settlement.

Diverging demands from communities

Meitei civil society groups have maintained that all internally displaced persons should be allowed to return home safely, even as dialogue continues. However, Kuki leaders have insisted that a political solution in the form of a separate administration must come first, before discussions on rehabilitation and return from relief camps.

Meitei leaders have countered this position, arguing that the demand reflects an ethnocentric territorial claim and that humanitarian issues should be addressed alongside negotiations, as no area is exclusively inhabited by a single community.

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BJP spokesperson Shehzad Poonawalla’s mother injured in hit-and-run incident in Pune

BJP spokesperson Shehzad Poonawalla has alleged that his mother was deliberately hit by a car in Pune and left critically injured. She is scheduled to undergo surgery.

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Shehzad Punawalla

BJP national spokesperson Shehzad Poonawalla has claimed that his mother was seriously injured after being struck by a car in an alleged hit-and-run incident in Pune. The accused reportedly fled the spot after the incident, leaving her critically injured.

According to Poonawalla, the incident occurred a few hours earlier and his mother is scheduled to undergo surgery. He appealed to authorities to identify and arrest the person responsible at the earliest.

Sharing details on social media, Poonawalla said an unidentified individual ran a car over his mother and escaped from the scene. He requested prayers for her recovery and expressed anguish over the incident, describing his mother as a compassionate person whose injury had deeply shaken him.

He also tagged Pune City Police, senior police officials, and Maharashtra Chief Minister Devendra Fadnavis, urging strict legal action against the accused and ensuring that the person does not evade accountability.

CCTV footage surfaces, police complaint to be filed

In a related development, Poonawalla’s brother and political analyst Tehseen Poonawalla shared CCTV footage on social media that allegedly shows the moment their mother was hit by the vehicle.

Tehseen stated that his mother, a senior citizen, had stepped out of the car while it was being refuelled when the incident occurred. He alleged that the act appeared deliberate and said efforts were underway to identify the vehicle involved.

He further confirmed that a police complaint would be filed and questioned how the vehicle could have hit his mother when she was standing at a distance from the car.

Fractured hip, surgery planned

Providing an update on her medical condition, Tehseen said their mother had suffered a fractured hip and would require surgical intervention. She has been admitted to hospital and doctors are monitoring her vitals ahead of surgery.

He described the incident as infuriating and heartbreaking, adding that his mother would need a rod implant following the hip surgery. He also said he had spoken to senior police officials and expressed hope that swift action would be taken.

Authorities have not yet issued an official statement on the incident. Further details are awaited as investigations continue.

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Three sisters die after jumping from ninth floor in Ghaziabad

Three minor sisters died after jumping from the ninth floor of their Ghaziabad apartment, allegedly following a dispute over online gaming, police said.

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Three sisters die after jumping from ninth floor in Ghaziabad

Three minor sisters died after jumping from the ninth floor of their apartment building in Uttar Pradesh’s Ghaziabad, allegedly following objections by their parents to their online gaming habits.

The incident occurred at Bharat City, a residential township in Ghaziabad, at around 2 am on Wednesday. The girls were found dead at the spot.

The sisters have been identified as Pakhi, aged 12, Prachi, 14, and Vishika, 16.

According to police, the three siblings were extremely close and spent most of their time together. They reportedly followed the same daily routine, including bathing, eating, attending school, and sleeping together.

Preliminary findings suggest the girls had become addicted to online gaming during the COVID-19 pandemic. They were reportedly playing an online task-based game referred to as a ‘Korean love game’. Police also said the sisters were not attending school regularly.

Investigators said the parents had objected to the girls’ excessive gaming, following which the incident allegedly took place. Police teams reached the spot soon after and have begun an investigation to ascertain the exact sequence of events.

Further details are awaited as the probe continues.

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