Disappointing Q2 GDP numbers aren’t a blip but slowdown in economy: Cong

On Wednesday, the Congress asserted that it is increasingly evident that the “disappointing” GDP growth figures for Quarter 2 are not a temporary fluctuation but indicate a definite economic slowdown, with the post-pandemic rebound lacking the breadth needed to sustain long-term growth.

Congress general secretary in-charge of communications Jairam Ramesh referenced a newspaper article that suggested the effects of restricted job creation and sluggish wage growth are evident in the increased reliance on debt.

Ramesh stated that the article validates the increasing worries regarding the Indian economy. “It is becoming clear that the disappointing Q2 GDP growth numbers aren’t a blip but a clear slowdown in the economy. The Government’s attempts to pass the buck on to the RBI’s interest rate regime and foreign exchange market interventions is an attempt to escape responsibility,” he said. The post-pandemic bump in growth was driven by a service exports boom and its knock-on effects but this is not broad-based enough to power long-term growth, Ramesh said, citing the article.

“The middle class is shrinking. The shift in the automotive industry is clear evidence: the low-priced, small car markets (the sub Rs 10 lakh segment) earlier accounted for 73% of all car sales and now accounts for only 46% of cars sold. Growth is coming only from the premium end of the market, reflecting high inequality,” he said.

“The failure of Make in India and PLIs, the country’s mass unemployment crisis, and the decade-long wage stagnation is beginning to reflect in increasing household indebtedness, poor macro-economic outcomes, and sluggish investment,” Ramesh said.

India’s economic expansion declined to a nearly two-year low of 5.4 percent during the July-September quarter of this fiscal year because of weak performance in the manufacturing and mining industries; however, the nation still held the title of the fastest-growing large economy.

On Tuesday, Congress leader Rahul Gandhi criticized the Modi government for its economic policies, asserting that true development occurs when everyone advances, there is an equitable business environment, a just tax system, and workers’ incomes rise.

On Sunday, Gandhi announced the initiation of a ‘White T-shirt Movement,’ advocating for the rights of the people. He charged the Narendra Modi administration with neglecting the impoverished. The Congress leader revealed the initiative in a post on X and encouraged people to participate in it.

“If you believe in economic justice, oppose rising wealth inequalities, fight for social equality, reject all forms of discrimination, and strive for peace and stability in our country, wear your white T-shirts and join the movement,” said the video voiceover posted by Gandhi on X.

The Congress has been attacking the government over its handling of the economy, claiming the issues of rising prices, decreasing private investment and stagnating wages are hitting the common people hard.