"Modi Govt, its cheerleaders living in fictional world": Jairam Ramesh on situation of Indian economy
Congress Rajya Sabha MP Jairam Ramesh on Friday hit out at the Narendra Modi government for not speaking the truth about the actual state of the Indian economy, saying that wages for most citizens have remained stagnant in the past decade, regardless of their class or sector."The Modi government, its drumbeaters, and cheerleaders are living in a fictional world. They are avoiding speaking the truth about the real state of the economy," Ramesh posted on X.
"In the past decade, the wages of most Indians have remained stagnant, regardless of their class or sector. This problem is even more severe in rural India. Household savings have seen a sharp decline, while household debt has risen rapidly. Private consumption, a key driver of growth, is faltering--while consumption of luxury goods has not decreased, which is a clear indication of growing economic inequality," he added.
He held the Modi government responsible for "completely devastating' the economy with its decisions, including demonetisation and Goods and Services Tax (GST). "In the past decade, the five shocks delivered by Prime Minister Modi have completely devastated the Indian economy. No one else can be held responsible for this. Demonetisation completely derailed our growth momentum and ruined the livelihoods of crores of Indians. The fundamentally flawed GST--neither good nor simple--has wreaked havoc on thousands of business enterprises across the country. Only those large companies that can afford the heavy costs of complying with GST regulations have survived," Ramesh said.
He further stated that "record levels of imports" from China caused lakhs of MSMEs across the country to shut down, especially in Gujarat, where nearly one-third of MSMEs associated with the stainless steel industry ceased operations. "Exports in several key sectors are dependent on imports of raw materials, components, and intermediate goods from China," Ramesh said, adding, "Private investment is no longer as dynamic as it was between 2004 and 2014. Indian industrialists are increasingly taking citizenship in other countries. A regime of raids driven by political vendettas and extortion, coupled with the growing influence of cronyism, has deeply shaken confidence in the Indian economy."
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