NEW DELHI: Ahead of the Economic Survey and the Union Budget, the Congress on Tuesday launched a scathing attack on the government over the state of the economy, questioning the numbers it has been presenting and claiming that “inequality is on the rise” with welfare in “retreat”.
In a report released by Congress’s research department, the party said it was important to lay bare “facts” before the people as the government would roll out its “propaganda” through the President’s address to both Houses of Parliament, Economic Survey and the Union Budget.
Addressing a press conference, AICC Research Department chairman Rajeev Gowda wondered whether the Modi government’s numbers can be believed. “There are terms like ‘Goldilocks Moment’ being used for the Indian economy by the Modi government and its fans, but unfortunately, this is far from the reality...The IMF gave the Modi government’s numbers a C grade. The numbers show a 0.5% inflation. Is that the lived reality of the vast masses of people?” he asked.
Former chief economic advisor Arvind Subramanian has calculated that GDP figures offered by the goverment are at least 2.5% higher than the actual reality, Gowda said.
“In the first half, you had some record-breaking numbers saying that manufacturing grew at 8.4%. But if you look at the biggest component of manufacturing, the index of eight core industries grew by only 2.9%,” he said.
He claimed that the rupee has been the worst-performing currency in Asia against the dollar in the last one year.
Gowda claimed that four of five Indians subsist on less than Rs 200 per day. “One third subsist on less than Rs 100/day. Net household financial savings are at a five-decade low of 5.2%, household debt is sharply up to 41% from 35% in 2019.” People pay more direct tax than corporations - up from 38.1% in FY14 to 53.4 % in FY24, he said.
“Ex-IMF chief economist Gita Gopinath asserted that ‘pollution poses greater threat to India’s economy than tariffs’. State of Global Air report concludes that 20 lakh Indians died prematurely because of polluted air in 2023. The Lancet reports that in 2022, the monetised value of premature mortality due to outdoor air pollution in India is 9.5% of GDP,” he said.
‘Four of five Indians live on less than Rs 200 per day’
Congress Research Department chairman Rajeev Gowda claimed that four of five Indians subsist on less than Rs 200 per day. “One third subsist on less than `100/day. Net household financial savings are at a five-decade low of 5.2 per cent, household debt is sharply up to 41 per cent from 35 per cent in 2019.” People pay more direct tax than corporations - up from 38.1 per cent in FY14 to 53.4 per cent in FY24, he said.