The “disappointing” growth numbers in the second quarter of the gross domestic product (GDP) are not a blip but a clear indication of a slowdown in the economy, the Congress said on Wednesday (January 22, 2025).
Congress general secretary in-charge communications Jairam Ramesh, citing an article in a newspaper, posted on X that the fallout of limited job creation and muted wage growth can be seen in the greater recourse to debt.
“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,” Mr. Ramesh said.
Quoting the piece, Mr. Ramesh 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”.
“The middle class is shrinking. The shift in the automotive industry is clear evidence: the low-priced, small car markets (the sub ₹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, adding, “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”.
Published - January 22, 2025 04:28 pm IST