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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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Nana Patole’s feet-washing video sparks BJP attack, Congress leader responds

A Guru Purnima video showing Congress leader Nana Patole’s feet being washed has sparked a political controversy in Maharashtra, drawing criticism from the BJP and a strong response from Patole.

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A video showing senior Congress leader Nana Patole’s feet being washed during a Guru Purnima event has triggered a political controversy in Maharashtra, with the BJP criticising the ritual and the Congress leader defending it as a family tradition.

The viral clip shows Mr Patole seated on a sofa while two men wash his feet, shower flowers on him and place fruits near his feet as part of the ceremony. The incident quickly drew attention on social media and prompted sharp reactions from political leaders.

BJP calls it ‘Congress culture’

Reacting to the video, Maharashtra minister and BJP leader Chandrashekhar Bawankule said the incident reflected the “culture of Congress leaders”.

He said such acts only invite criticism and negative publicity, adding that Congress leaders should learn from similar controversies instead of repeating them.

Nana Patole defends Guru Purnima ritual

Responding to the criticism, Mr Patole rejected the allegations and said he neither instructed nor compelled anyone to perform the ritual.

According to the Congress leader, the ceremony took place on Guru Purnima when two younger members of his family voluntarily chose to honour him as their Guru.

He said they insisted on performing the ritual as a mark of respect.

Congress leader hits back at BJP

Mr Patole also countered the BJP’s criticism, saying the party had no authority to lecture others on culture and traditions.

In an apparent reference to the alleged Ram temple donation theft case, he remarked that those who “loot donation funds” should not advise others on cultural values.

The exchange has added to the political sparring between the BJP and the Congress in Maharashtra, with the viral video continuing to generate debate on social media.

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Bypoll results today: First electoral test after student protests begins in BJP-ruled states

Vote counting is underway in three BJP-ruled states, with the bypoll results expected to indicate voter sentiment after nationwide protests over alleged examination paper leaks.

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Bypolls

Counting is underway in Bankipur, Datia and Manjalpur, with the bypolls being closely watched as the first electoral contest following nationwide student protests over alleged paper leaks.

The counting of votes is underway for Assembly by-elections in three BJP-ruled states—Bihar, Madhya Pradesh and Gujarat—in what is being seen as the first electoral test since nationwide student protests over alleged examination paper leaks.

The bypolls were held on Thursday in Bihar’s Bankipur, Madhya Pradesh’s Datia and Gujarat’s Manjalpur Assembly constituencies. Political observers are watching the outcome closely as the results are expected to offer an indication of voter sentiment, particularly among young voters who participated in or were influenced by the protests.

Bankipur contest draws attention amid BJP candidate change

The Bankipur Assembly seat in Bihar has traditionally been considered a BJP stronghold, with the party retaining the constituency in every election so far. The bypoll was necessitated after former MLA and BJP leader Nitin Nabin was elected to the Rajya Sabha.

The contest attracted attention after the BJP’s original nominee, Abhishek Kumar Sinha, withdrew from the race a day after filing his nomination, citing family reasons. The party later fielded its youth wing leader, Neeraj Kumar Sinha.

The opposition seized on the development, claiming the BJP was concerned about retaining the seat. Rashtriya Janata Dal leader Tejashwi Yadav expressed confidence that his party’s candidate, Rekha Gupta, had secured support across different communities and could deliver an unexpected result.

The election also marked the anticipated electoral entry of political strategist-turned-politician Prashant Kishor, adding further interest to the contest.

Datia sees straight BJP-Congress fight

In Madhya Pradesh, the Datia Assembly seat fell vacant after Congress MLA Rajendra Bharti was disqualified on April 2 under provisions of the Representation of the People Act, 1951.

The BJP has fielded first-time Assembly candidate Ashutosh Tiwari against Congress nominee Kunwar Ghanshyam Singh.

Datia has long been associated with former state Home Minister Narottam Mishra, who represented the constituency for three consecutive terms between 2008 and 2018 before losing the 2023 Assembly election. The selection of a new BJP candidate reportedly led to protests by some of Mishra’s supporters.

Congress candidate Kunwar Ghanshyam Singh, a two-time former MLA and member of the erstwhile royal family, is banking on his previous electoral victories, personal connect with voters and dissatisfaction among sections of BJP workers.

Manjalpur bypoll follows veteran BJP MLA’s death

In Gujarat, voting took place in the Manjalpur Assembly constituency after the death of sitting BJP MLA Yogeshbhai Narandas Patel.

The contest is between BJP candidate Satish Govindbhai Patel, a former Vadodara Municipal Corporation councillor, and Congress leader Bhikhabhai Rabari, a former state minister and Gujarat Congress vice president.

Yogesh Patel had represented the Raopura Assembly constituency five times before shifting to the newly created Manjalpur seat after delimitation. He went on to win Manjalpur in 2012, 2017 and 2022, completing eight consecutive Assembly election victories over a span of 36 years.

The bypoll comes after the BJP’s record performance in the 2022 Gujarat Assembly elections, when the party won 156 of the state’s 182 seats.

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Delhi Police to drop case against minor accused of abusing PM Modi, say reports

Delhi Police have decided not to pursue a case against the minor accused of using abusive language against Prime Minister Narendra Modi during the CJP protest at Jantar Mantar after her apology and the Prime Minister’s call for forgiveness.

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Delhi Police have decided not to register a case against a minor girl accused of using abusive language against Prime Minister Narendra Modi during the Cockroach Janta Party (CJP) protest at Delhi’s Jantar Mantar, according to sources.

The development follows the filing of a Zero FIR by Noida Police over the viral video. The FIR had identified the accused as a 25-year-old woman. However, the girl later clarified through a public apology video that she is 15 years old and claimed she made the remarks after being influenced by others present at the protest.

Minor apologises for remarks

In her apology video, the teenager admitted that her comments were unacceptable and expressed remorse.

She said she was only 15 years old and described the incident as her “first and last mistake.” She apologised to the country and sought forgiveness, adding that she felt deeply ashamed of her actions.

PM Modi appeals for forgiveness

Last week, Prime Minister Narendra Modi said he had forgiven the “misguided children” who abused him and appealed to society not to seek punitive action against them.

In an Instagram reel, he said that dragging such children through legal proceedings would not improve the situation and urged people to accept his decision to forgive them.

Mother seeks cancellation of FIR

Following the Prime Minister’s remarks, the girl’s mother thanked him for showing compassion and requested that the FIR registered against her daughter under an incorrect name and age be withdrawn.

She said the Prime Minister had given her daughter a “new life” and appealed for the cancellation of the case.

The mother also urged the government to restrict access to social media platforms such as Instagram and Facebook for children below the age of 18, arguing that minors can be easily influenced and should focus on their education instead of participating in protests.

Background of the CJP protest

The incident occurred during the Cockroach Janta Party’s protest at Jantar Mantar, which continued for more than five weeks over the alleged NEET paper leak. The agitation drew support from thousands of people, primarily students.

The protest concluded last month after Education Minister Dharmendra Pradhan resigned and the government agreed to several of the group’s demands, including assurances of no coercive action against protesters.

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