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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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PM Modi to lead Somnath Amrit Parv celebrations with grand roadshow in Gujarat

PM Modi is set to visit Somnath Temple in Gujarat for the Somnath Amrit Parv celebrations marking 75 years of the temple’s reconstruction, with a roadshow and religious ceremonies planned.

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3 hours ago

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May 8, 2026

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PM Modi

Prime Minister Narendra Modi is set to visit the Somnath Temple in Gujarat on May 11 to lead the ‘Somnath Amrit Parv’ celebrations marking the 75th anniversary of the temple’s reconstruction.

According to state ministers and senior officials, the Prime Minister will take part in religious rituals, lead a public roadshow, and address a gathering during the celebrations.

The visit comes months after PM Modi attended the Somnath Swabhiman Parv held earlier this year, which commemorated 1,000 years since the first recorded attack on the temple in 1026.

Grand roadshow and cultural programmes planned

Officials said PM Modi will arrive in Somnath from Jamnagar and lead a one-kilometre roadshow from the Triveni Helipad to the statue of Veer Hamirji Gohil. The procession is expected to feature cultural dance performances from different Indian states along with displays representing the 12 Jyotirlingas.

A Suryakiran Air Show and a flower petal shower over the temple spire are also planned during the event. The Prime Minister is expected to be welcomed by Rishikumars and members of local communities dressed in traditional attire.

During his visit, PM Modi will perform rituals including Kumbhabhishek, Dhvaja Puja and Mahapuja at the temple before addressing a public gathering at Sadbhavna Ground.

Somnath reconstruction anniversary

The celebrations mark 75 years since the reconstructed Somnath Temple was inaugurated in 1951 in the presence of India’s first President Rajendra Prasad. The reconstruction effort after Independence was led under the vision of Sardar Vallabhbhai Patel and supported by leaders including K.M. Munshi.

State minister Jitu Vaghani said the temple’s restoration remains a symbol of national self-respect and resilience.

After the Somnath events, PM Modi is scheduled to travel to Vadodara to inaugurate the Sardardham Educational Complex. Preparations are also underway for a possible roadshow in the city later in the day.

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Mamata beater Suvendu Adhikari set to become next West Bengal CM

Suvendu Adhikari emerged as the BJP’s choice for West Bengal Chief Minister after the party’s legislature meeting in Kolkata following its historic Assembly election victory.

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3 hours ago

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May 8, 2026

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Suvendu-Adhikari

Senior BJP leader Suvendu Adhikari is set to become the next Chief Minister of West Bengal after being elected leader of the BJP legislature party during a key meeting in Kolkata on Thursday.

The development comes days after the BJP secured a decisive victory in the 2026 West Bengal Assembly elections, ending the Trinamool Congress’ long rule in the state. Party leaders met in the presence of senior central leadership to finalise the chief ministerial face ahead of the swearing-in ceremony scheduled for May 9.

Union Home Minister Amit Shah attended the legislature party meeting where Adhikari’s name was formally announced. Reports said the BJP leadership backed him after he emerged as the party’s strongest face in Bengal politics over the past few years.

Adhikari played a major role in the BJP’s campaign across the state and remained one of the party’s most aggressive leaders against the ruling Trinamool Congress. He also defeated former Chief Minister Mamata Banerjee in Bhabanipur during the Assembly elections, strengthening his position within the party.

The BJP’s victory is being viewed as a major political shift in West Bengal, where the party is set to form its first government. Adhikari, once a senior Trinamool Congress leader, had joined the BJP before the 2021 Assembly elections and later became Leader of Opposition in the state Assembly.

Following the announcement, celebrations were reported outside Adhikari’s residence in East Midnapore, with party workers distributing sweets and raising slogans in support of the BJP leader.

The swearing-in ceremony of the new BJP government is expected to take place in Kolkata on May 9, where Adhikari will officially assume charge as the Chief Minister of West Bengal.

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Suvendu Adhikari emerges frontrunner for Bengal Chief Minister post

Suvendu Adhikari has emerged as the leading candidate for the West Bengal Chief Minister post as BJP prepares to form its first government in the state. Reports suggest the new cabinet may also include two deputy chief ministers.

Published

9 hours ago

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May 8, 2026

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BJP leader Suvendu Adhikari has emerged as the leading contender for the post of Chief Minister in West Bengal as the party prepares to form its first government in the state following its Assembly election victory.

The BJP legislature party is scheduled to meet in Kolkata to elect its leader, a decision that is expected to formally determine the next Chief Minister. Union Home Minister Amit Shah reached Kolkata ahead of the meeting and is overseeing the selection process.

Sources cited in media reports suggest the new BJP-led government may also appoint two deputy chief ministers, a post that has remained vacant in West Bengal for nearly two decades. One of the deputy CM positions could reportedly go to a woman leader. BJP MLA Agnimitra Paul is among the names being discussed for the role.

Another deputy chief minister could be chosen from north Bengal, with former Union minister Nisith Pramanik being seen as a possible contender, according to reports. There is also speculation that the BJP leadership may consider a representative from the tribal community for a senior cabinet role.

Adhikari, who played a key role in the BJP’s election campaign, defeated Mamata Banerjee in Bhabanipur during the recently concluded Assembly elections. The BJP secured a two-thirds majority in the 294-member Assembly, paving the way for its first government in West Bengal.

The swearing-in ceremony for the new government is expected to take place on May 9 in Kolkata. Prime Minister Narendra Modi, Amit Shah and several senior BJP leaders are expected to attend the event.

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