Congress Raises Concerns Over Economic Survey
In a recent statement, Congress criticized the Indian government, describing the current economic landscape as one of the most precarious in years. Following the release of the Economic Survey, senior Congress leaders argued that the survey offers a skewed and overly positive portrayal of the economy, failing to address significant underlying challenges. This critique underscores Congress’s demand for more realistic and urgent policy measures to address economic stressors, especially as they prepare for the upcoming Budget Session.
Key Economic Concerns Highlighted
Congress’s concerns primarily revolve around several pressing issues, including unemployment, inflation, and declining investment. The party asserts that the Economic Survey selectively presents data to paint a brighter picture while overlooking persistent high unemployment rates and significant inflation, particularly in food prices. Congress leaders pointed out that food inflation remains a critical issue, impacting everyday living costs. They argue that these economic stressors disproportionately affect low- and middle-income households, who struggle the most with rising food prices and stagnant wages.
The party also flagged a decline in private sector investment, which is essential for job creation and economic growth. According to Congress, investment levels are at a two-decade low, with many businesses, particularly small and medium enterprises (SMEs), struggling to stay competitive against cheap imports. This decrease in investment, they argue, stifles India’s manufacturing capabilities and prevents sustainable job creation, which is needed to address the ongoing unemployment crisis.
Trade Imbalance and Increased Imports
Congress leaders also criticized the government’s trade policies, which they claim have led to a growing dependence on imports, particularly from China. Citing data that imports from China have grown from 11% in 2014 to 16% of total imports, Congress expressed concerns that domestic industries, especially small businesses, are unable to compete with cheaper imported goods. This influx of imports has reportedly harmed India’s SMEs, which struggle to survive amidst an influx of inexpensive foreign products.
The increase in imports, Congress argues, reflects broader issues in domestic production capacity and competitiveness. While initiatives like “Make in India” aimed to bolster local manufacturing, the party claims these programs have yet to yield significant results in terms of domestic job creation or self-reliance.
Call for Policy Reforms
The Congress party’s critique of the Economic Survey underscores its call for a more comprehensive and honest approach to economic policy. They urge the government to address key issues like job creation, inflation control, and import dependence to establish a more sustainable economic trajectory. Congress leaders argue that the upcoming Budget must acknowledge these realities and provide clear, actionable steps for economic recovery and growth.
