Five ‘Modi-Inflicted Shocks’ Devastated Indian Economy: Congress

The party asserted that the government and its supporters are not presenting a true picture of the country's economic state.

Congress general secretary in-charge of communications, Jairam Ramesh, stated in a X  post that the Modi government and its "drumbeaters" are living in a "make-believe world." He detailed the five shocks, holding the administration solely responsible for the economic fallout.

According to Ramesh, the first shock was demonetisation, which he claims disrupted India's growth and destroyed the livelihoods of millions.The second was a "fundamentally flawed GST" (Goods and Services Tax), which Ramesh described as neither good nor simple, alleging it has harmed thousands of businesses, benefiting only large corporations.

The third shock, Ramesh said, is the impact of record imports from China, which has led to the closure of a vast number of Micro, Small, and Medium Enterprises. He pointed out that even key Indian exports rely on raw materials and components from China.

A decline in private investment was cited as the fourth shock. Ramesh argued that the "buoyancy" seen between 2004 and 2014 is gone, with a growing number of Indian industrialists seeking citizenship in other countries. 

He attributed this to a "politically motivated and extortionist Raid Raj" and the expanding influence of "Modani" (a portmanteau of Modi and Adani), which he claims has eroded confidence in the economy. 

Finally, Ramesh pointed to stagnant wages and rising inequality as the fifth shock. He claimed that for the majority of Indians, particularly in rural areas, wages have not grown in the last ten years.

This has led to a sharp fall in household savings and a surge in household debt, causing private consumption to falter while luxury spending continues, widening the economic gap.

These assertions from the party came a day after former Congress president and Leader of the Opposition in the Lok Sabha, Rahul Gandhi, stated that everyone except the Prime Minister and the Finance Minister knows the country's economy is "dead." 

Gandhi's comments were in response to remarks from former US President Donald Trump, who had also referred to the Indian economy as "dead." Gandhi said he was "glad that President Trump has stated a fact."

Rahul Gandhi further alleged that the BJP-led government has destroyed the nation's economic, defence, and foreign policies and is "running the country to the ground." He claimed a future trade deal with the US would be defined by Donald Trump, with Prime Minister Modi complying with his terms.

With inputs from PTI