Indian Economy Devastated By 5 Modi-Inflicted Shocks: Congress

On Friday, August 1, the Congress party asserted that the Indian economy has been severely impacted by a series of “five Modi-inflicted shocks.” Congress general secretary in-charge of communications, Jairam Ramesh, criticized the government and its supporters for being “economical with the truth” regarding the actual state of the economy.

Ramesh’s comments followed a statement from former Congress president and leader of the Opposition in the Lok Sabha, Rahul Gandhi, who claimed that “everybody except Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman know that the country’s economy is ‘dead’.”

In a post on X, Ramesh emphasized, “Over the past decade, the Indian economy has been well and truly devastated by a series of five Modi-inflicted shocks. Nobody else can be held responsible.” He pointed to demonetization as a significant factor, stating that it “completely disrupted our growth momentum and destroyed the livelihoods of crores of Indians.”

Ramesh also criticized the Goods and Services Tax (GST), describing it as “a Tax that is neither Good nor Simple,” which has “wreaked havoc on thousands of business enterprises across the country.” He noted that only large companies can afford the costs associated with GST compliance, leaving smaller businesses to struggle.

The Congress leader further claimed that record imports from China have resulted in the closure of numerous Micro, Small, and Medium Enterprises (MSMEs) across India. He highlighted that in Gujarat alone, around a third of the MSMEs in the stainless steel industry have shut down. “Exports in key areas are dependent on imports of raw materials, components, and intermediates from China,” he added.

Ramesh expressed concern over the decline in private investment, stating that it has lost the buoyancy it exhibited during the period from 2004 to 2014. He remarked, “Indian industrialists are acquiring citizenship of other countries in an ever-increasing measure.” He attributed this trend to the “politically motivated and extortionist Raid Raj,” which, along with the “proliferation of Modani’s tentacles,” has led to a loss of confidence in the Indian economy.

The stagnation of wages for the majority of Indians over the last decade was another point of contention for Ramesh. He noted that this stagnation is evident across various sectors and classes, particularly in rural India. “Household savings have fallen sharply just as household debt has ballooned,” he stated. He warned that private mass consumption, a key driver of growth, is faltering, while luxury consumption remains unaffected, indicating a widening gap in economic inequalities.

“The Modi government, its drumbeaters and cheerleaders are living in a make-believe world,” Ramesh asserted. “They are being economical with the truth of the real state of the economy.”

On Thursday, Rahul Gandhi had also criticized the BJP-led government, alleging that it has “destroyed the country’s economic, defence and foreign policies” and is “running the country to the ground.” Speaking to reporters in the Parliament House complex, Gandhi claimed that a trade deal with the US would happen, with US President Donald Trump playing a defining role in it.

When asked about Trump’s remarks labeling the Indian economy as “dead,” Gandhi responded, “He is right; everybody knows this except the prime minister and the finance minister. Everybody knows that the Indian economy is a dead economy. I am glad that President Trump has stated a fact.” He concluded by reiterating his belief that the BJP has indeed destroyed the Indian economy.