The Congress on Wednesday slammed Prime Minister Narendra Modi-led central government, saying India is in its most precarious and difficult economic situation in many years, adding wage stagnation, inflation and inequality are undermining consumption growth in the country.

Congress General Secretary in charge of communications Jairam Ramesh warned that failure to address existing chokepoints could severely hinder growth in the coming years.

He noted that over the past three decades, India’s economic narrative has centered on consumption, with millions of families successfully moving out of poverty and into the middle class, now capable of purchasing goods and assets. He asserted this signified a robust and rapidly expanding economy benefiting a broad swath of society.

However, Ramesh pointed out that this consumption trend has reversed in the last decade, posing a significant challenge for the Indian economy. Voices from India Inc. echo his concerns, with one prominent CEO remarking that the middle class is shrinking.

Ramesh identified several key factors contributing to this downturn: stagnant wages, soaring inflation, and rising inequality.

He explained that evidence from various data sources, including the recently published Annual Survey of Industries (ASI) for 2022-2023, demonstrates that workers today have less purchasing power than they did a decade ago.

The Congress leader warned that the stagnation in wages might correlate with a decline in labor productivity, leaving families with less disposable income for consumption.

Addressing the issue of high inflation, Ramesh cited Dr. Viral Acharya, former Deputy Governor of the Reserve Bank of India, highlighting the rise of five major conglomerates, including the Adani Group, which have formed monopolies in 40 sectors such as cement, chemicals, and construction.

He claimed that in 2015, for every Rs 100 spent by consumers, Rs 18 went to industrialists, whereas today, that figure has risen to Rs 36 in profits for the same owners.

Ramesh attributed the recent price hikes to the government’s cronyism and favoritism towards these conglomerates, asserting that the continuous rise in goods and services costs has diminished the common man’s capacity for consumption amidst stagnating wages.

He addressed the issue of inequality, stating that India’s recovery from the COVID-19 pandemic has been markedly uneven and K-shaped, with rural areas and the impoverished being disproportionately affected.

He pointed out that two-wheeler sales in rural regions, a key indicator of economic health, remain below 2018 levels.

Former Delhi Chief Minister Arvind Kejriwal has hit back at Prime Minister Narendra Modi over the Centre’s Ayushman Bharat health insurance scheme accusing him of doing politics over the issue of public health in the national capital. 

Arvind Kejriwal’s reaction followed after PM Narendra Modi criticised the Delhi and West Bengal governments for failing to implement the Ayushman Bharat health insurance scheme out of political interest. The Prime Minister also said that he was disappointed with the state of free healthcare for the elderly in Delhi and West Bengal and called it a missed opportunity to serve the senior citizens.

Addressing an event at New Delhi’s All India Institute of Ayurveda, PM Modi apologised to all the elderly aged above 70 years in Delhi and West Bengal, and said that due to the state government’s decision, he cannot help them. 

Responding to PM Modi’s allegation, the former Delhi Chief Minister said that speaking wrongly about the issue of public health and indulging in politics on it is not right. Taking to X, Arvind Kejriwal said PM Modi should study the Delhi model of healthcare and replace his government’s Ayushman Bharat health insurance scheme with it across the country for real benefit to the people. He further claimed that he is yet to meet a person who got treatment through the Ayushman Bharat scheme. 

Targeting the Prime Minister, Arvind Kejriwal said that speaking wrongly over public health issues and indulging in politics on it is not right. He further stated that under the Delhi government scheme, each person in the city receives free medical treatment, and the government bears the entire cost whether it’s a Rs 5 pill or treatment worth Rs 1 crore. He also offered to send a list of lakhs of beneficiaries of Delhi government’s health scheme. 

The AAP national convenor also questioned benefits under the Ayushman Bharat scheme, saying the CAG found several irregularities in it. 

In a significant development, the Enforcement Directorate (ED) on Tuesday filed chargesheet against Aam Aadmi Party (AAP) MLA Amanatullah Khan in Delhi Waqf Board money laundering probe.

The 110-page supplementary chargesheet also named one Mariam Siddiqui, who was not arrested by the ED as an accused in the case. Reportedly, the court is likely to take it up for consideration on November 4.

AAP MLA Amanatullah Khan was arrested by the ED on September 2 from his Okhla residence and is currently in judicial custody. Furthermore, the legislator from Okhla was arrested after the federal agency raided his house and questioned him for a few hours. 

In April 2024, the ED approached the court seeking an arrest warrant against Amanatullah Khan, citing his non-appearance before the agency. The ED had filed a chargesheet against his alleged associates Daud Nasir, Zeeshan Haider, Jawed Imam Siddiqui and Kausar Imam Siddiqui in January.

The central agency also alleged that the AAP MLA acquired huge proceeds of crime in cash through illegal recruitment of staff in the Delhi Waqf Board and invested these to purchase immovable assets in the names of his associates.

As per the Enforcement Directorate, AAP MLA Khan benefited from leasing out Waqf Board properties when he was the board’s chairman between 2018 and 2022.

Earlier on October 18, the ED informed the Delhi high court that its probe into Amanatullah Khan under the Prevention of Money Laundering Act (PMLA) is based on the multiple FIRs.

The ED also opposed Khan’s plea challenging his arrest in connection with a money laundering case linked to alleged irregularities in appointments at the Delhi Waqf Board during his time as chairperson. 

The ED further alleged that Amanatullah Khan is misleading the court by referencing the outcome of one FIR while neglecting to mention ongoing investigations related to other FIRs. It also stated that evidence gathered during the investigation, including statements recorded under Section 50, indicates that Khan appointed individuals close to him, circumventing legal procedures and committing multiple irregularities for personal gain during his tenure as Chairman of the Delhi Waqf Board.