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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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1 year ago

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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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Amit Shah counters delimitation concerns, says southern states to gain Lok Sabha seats

Amit Shah assures Parliament that southern states will gain Lok Sabha seats after delimitation, countering opposition criticism during the women’s reservation debate.

Published

9 hours ago

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April 16, 2026

By

Amit Shah

Union Home Minister Amit Shah on Thursday addressed concerns over the proposed delimitation exercise, asserting in the Lok Sabha that southern states will not lose representation but instead see an increase in their number of seats.

His remarks came during a heated debate linked to the implementation of women’s reservation, where opposition parties have raised fears that population-based delimitation could reduce the political weight of southern states.

Shah rejected these claims, calling them misleading, and said the proposed framework ensures fairness while expanding the overall strength of the Lok Sabha.

Seat count to rise with expansion of Lok Sabha

The government has indicated that the total number of Lok Sabha seats could increase significantly as part of the delimitation process. In this expanded House, the combined representation of southern states is expected to rise from 129 seats at present to around 195 seats.

Shah emphasised that no state will lose seats in absolute terms, and the exercise is designed to reflect population changes while maintaining balance across regions.

State-wise projections shared in Parliament

During his address, Shah also provided indicative figures for individual southern states, suggesting notable increases in representation. According to the projections:

  • Tamil Nadu could see its seats rise substantially
  • Kerala, Telangana, and Andhra Pradesh are also expected to gain additional seats
  • Karnataka’s representation may increase as well

These figures were presented to counter the argument that delimitation would disproportionately favour northern states.

Political debate intensifies over linkage with women’s quota

The delimitation exercise has been closely linked to the rollout of women’s reservation, which proposes one-third seats for women in Parliament and state assemblies.

Opposition leaders have questioned this linkage, arguing that tying reservation to delimitation could delay its implementation and raise federal concerns. Some leaders have also warned that the move could impact national unity if apprehensions among states are not addressed.

The government, however, maintains that the reforms are necessary to ensure equitable representation and to align the electoral system with demographic realities.

Centre dismisses ‘false narrative’ on southern states

Shah reiterated that concerns about southern states losing influence are unfounded. He said the delimitation process will increase representation across regions and described the criticism as a “false narrative” aimed at creating confusion.

The issue is expected to remain a key flashpoint as Parliament continues discussions on the women’s reservation framework and related legislative changes.

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PM Modi assures no discrimination in women’s quota, delimitation debate intensifies in Parliament

PM Narendra Modi has assured that women’s reservation will be implemented without discrimination, amid a heated debate over delimitation in Parliament.

Published

16 hours ago

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April 16, 2026

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PM modi

Prime Minister Narendra Modi has assured that there will be no discrimination in the implementation of women’s reservation, as Parliament witnessed a sharp debate over the proposed linkage between the quota and delimitation exercise.

During the ongoing special session, the government reiterated its commitment to ensuring fair representation while addressing concerns raised by opposition parties regarding the timing and structure of the legislation.

The proposed framework aims to reserve 33 percent of seats for women in the Lok Sabha and state assemblies. However, its implementation is tied to a fresh delimitation exercise, which is expected after the next census.

Opposition questions timing and intent

Opposition leaders have raised concerns that linking the women’s quota to delimitation could delay its implementation. They argue that the process of redrawing constituencies may push the actual rollout further into the future.

The issue has triggered a broader political confrontation, with multiple parties questioning whether the move could alter representation across states.

Some critics have also alleged that the delimitation exercise could disproportionately benefit certain regions based on population, a charge the government has rejected.

Government reiterates commitment to fair implementation

Responding to these concerns, the Centre has maintained that the reforms are necessary to ensure accurate and updated representation based on population data.

Leaders from the ruling side have repeatedly emphasized that the process will be carried out transparently and without bias. The assurance that there will be “no discrimination” is aimed at addressing fears among states and opposition parties.

The debate marks a key moment in Parliament, with both sides engaging in intense exchanges over one of the most significant electoral reforms in recent years.

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Give all tickets to Muslim women, Amit Shah says, attacking Akhilesh Yadav on sub-quota demand

A sharp exchange between Amit Shah and Akhilesh Yadav in Parliament over sub-quota for Muslim women highlights key divisions on women’s reservation implementation.

Published

18 hours ago

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April 16, 2026

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A heated exchange broke out in Parliament during discussions on the women’s reservation framework, with Union Home Minister Amit Shah and Samajwadi Party chief Akhilesh Yadav locking horns over the demand for a sub-quota for Muslim women.

The debate unfolded as the government pushed forward key legislative measures to implement 33% reservation for women in the Lok Sabha and state assemblies.

Akhilesh Yadav argued that the proposed reservation must ensure representation for women from marginalised communities, including Other Backward Classes (OBCs) and Muslim women. He said that without such provisions, large sections could remain excluded from political participation.

He also questioned the timing of the bill, alleging that the Centre was avoiding a caste census. According to him, a census would lead to renewed demands for caste-based reservations, which the government is reluctant to address.

Government rejects religion-based quota

Responding to the demand, Amit Shah made it clear that reservation based on religion is not permitted under the Constitution.

He stated that any proposal to provide quota to Muslims on religious grounds would be unconstitutional, firmly rejecting the idea of a separate sub-quota for Muslim women within the broader reservation framework.

The government has maintained that the existing framework already includes provisions for Scheduled Castes (SC) and Scheduled Tribes (ST) women within the overall reservation structure.

Wider political divide over implementation

The issue of sub-categorisation within the women’s quota has emerged as a major flashpoint, even as most opposition parties broadly support the idea of women’s reservation.

Samajwadi Party leaders reiterated that their support for the bill depends on inclusion of OBC and minority women, while the government continues to defend its constitutional position.

The debate is part of a broader discussion during the special Parliament session, where multiple bills linked to delimitation and implementation of the women’s quota are being taken up.

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