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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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Akhilesh Yadav says BJP completely bent on dictatorship after UP govt extends ban on outsiders entry into Sambhal

He said that this government is fearful, unwilling to allow the truth to surface, and apprehensive about public outrage.

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Hours after the Uttar Pradesh Chief Minister Yogi Adityanath-led government extended the ban on the entry of outsiders into Sambhal till December 10, Samajwadi Party president Akhilesh Yadav on Saturday said that the BJP is completely bent on dictatorship and it does not believe in democracy.

“Injustice and atrocities are at their peak in Uttar Pradesh. The BJP does not believe in democracy. There is an emergency-like situation in Uttar Pradesh,” Yadav said in a release shared by the party on X.

The former chief minister said imposing a ban shows the failure of the BJP government, administration and management. Asserting that he said if the government had imposed such a ban earlier on “those who thought of causing riots and made people raise frenzied slogans”, the harmony and peace in Sambhal would not have been disturbed.

“It is noteworthy that the District Magistrate of Sambhal, in his order (IPC Section 163), has prohibited the entry of any outsider, other social organization and public representative within the boundary of Sambhal district without permission till 10.12.2024,” the statement read.

The Samajwadi Party chief slammed the UP government for stopping a 15-member delegation from entering violence-affected Sambhal, claiming that the BJP government seeks to conceal the injustices and atrocities it has perpetrated there.

He said that this government is fearful, unwilling to allow the truth to surface, and apprehensive about public outrage.

Yadav accused the government of instructing the police to confine Opposition leaders, including prominent leaders from the Samajwadi Party, to their homes.

He questioned why prominent leaders such as Mata Prasad Pandey, Lal Bihari Yadav, Shyam Lal Pal, and Ravidas Mehrotra were barred from leaving their residences when the restrictions were reportedly limited to Sambhal district.

“Has the BJP government declared a state of emergency across the entire state? The Leader of the Opposition and the State President of the Samajwadi Party couldn’t even reach the party office,” he stated.

“Such house arrest of public representatives poses a serious threat to democracy. Since the BJP took power, it has been systematically undermining democracy and the Constitution,” Yadav added.

The SP chief expressed his displeasure regarding the obstruction faced by the Samajwadi Party delegation. He suggested that similar to how the BJP frequently reshuffles its cabinet, there should be a complete overhaul of the administrative body in Sambhal in response to allegations of negligence, including accountability for any deaths that occurred.

Announcing that the Samajwadi Party would provide financial aid of Rs 5 lakh to each family of the innocent victims of the Sambhal incident, the party has demanded that the BJP government grant Rs 25 lakh in compensation to the families of those killed in the violence.

Furthermore, Yadav asserted that justice is anticipated solely from the President and the Supreme Court, insisting that those who threaten the unity and peace of the nation be held accountable.

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Rahul Gandhi says PM Modi biased towards Adani, discriminating against Wayanad landslide victims

He said: “This is the atmosphere in which we are operating. It is the feelings that people have toward us that give us confidence and protect us.”

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Leader of Opposition in the Lok Sabha and Congress leader Rahul Gandhi on Saturday accused Prime Minister Narendra Modi of being biased towards industrialist Gautam Adani and of discriminating against Wayanad landslides victims by not providing them the due support.

In a joint public meeting with sister Priyanka in Wayanad after her massive victory in the Lok Sabha byelection, Rahul alleged that PM Modi was treating Adani differently from the people of India, despite his indictment in the US, even though the Constitution says everyone should be treated equally.

Hitting out at PM Modi, Rahul claimed that the “PM says it does not matter if Adani has been indicted in the US and called a criminal there, in India we will not indict him”.

Continuing his allegations against the prime minister, the Leader of the Opposition in the Lok Sabha said Modi discriminates against the people of Wayanad and he was not willing to provide them the support that they were due.

He said: “This is the atmosphere in which we are operating. It is the feelings that people have toward us that give us confidence and protect us.”

After paying tribute to the victims of the landslides, Rahul said his party and the UDF are standing with the people who lost family members, property and suffered in the tragedy.

He said unfortunately his party is not in the government and therefore they cannot do what a government can do. “So, I told my sister and (AICC general secretary) K C Venugopal that every member of the Congress and the UDF should put pressure on the government of Kerala to help the victims of the landslides,” he added.

Rahul said Priyanka’s win from the Wayanad seat indicates that the people have placed their faith and trust in them to represent the hill constituency in the Parliament. He also expressed confidence that the Congress-led opposition will defeat the ideology of the BJP which behaves arrogantly and allegedly spreads hate and divisiveness.

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Congress slams PM Modi over sinking GDP rate, says slowdown will have severe consequences

“This is the ultimate root cause for India’s growth slowdown, and multiple sources of data have now confirmed this wage stagnation,” Ramesh stated.

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The Congress on Saturday slammed the Prime Minister Narendra Modi-led central government over the sinking Gross Domestic Product (GDP) growth rate and said stagnating real wages as the fundamental reason behind it.

Sharing the party statement on the recent data from a research firm on X, Congress general secretary in-charge communication Jairam Ramesh hit out at PM Modi for being willfully blind to the causes of this sharp slowdown.

On India’s economic growth slowing to a near two-year low, Ramesh said the country’s medium and long-term economic potential is eroding rapidly.

The Congress leader asked how long will the grim reality of stagnant wages for crores of workers continue to be ignored.

GDP growth figures released last evening for July-September 2024 are much worse than anticipated, with India recording a measly 5.4% growth and consumption similarly growing by an unimpressive 6%, Ramesh said.

He said the “non-biological” PM and his cheerleaders were wilfully blind to the causes of this sharp slowdown, but, he added a new report on ‘Labour Dynamics of Indian States’ released by a leading Mumbai-based financial information services company, India Ratings and Research, on the 26th of November 2024 reveals its real cause: stagnant wages.

Ramesh noted that the report uses Periodic Labour Force Survey (PLFS) data to show that overall real wage growth at the national level has been flat at 0.01% over the last five years.

In fact, the workers in Haryana, Assam and Uttar Pradesh have seen their real wages decline in the same period, he pointed out.

This is hardly the exception, nearly every piece of evidence points to this same damning conclusion that the average Indian can buy less today than they could 10 years ago, Ramesh said.

“This is the ultimate root cause for India’s growth slowdown, and multiple sources of data have now confirmed this wage stagnation,” Ramesh stated.

Citing the Labour Bureau’s Wage Rate Index, he said real wages for the labourers stagnated between 2014-2023 and in fact declined between 2019-2024.

Ramesh further cited the Ministry of Agriculture’s Agricultural Statistics and said that under former prime minister Manmohan Singh, real wages for agricultural labourers grew at 6.8% each year.

“Under Narendra Modi, real wages for agricultural labourers declined by minus 1.3% each year,” he said.

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