Jairam Ramesh Highlights Economic Challenges Under Modi Government
Congress General Secretary Jairam Ramesh has raised concerns about the Indian economy, pointing out three major issues that could hinder growth. He criticized Prime Minister Narendra Modi and the NDA government for their “bombastic claims” about the economy. Ramesh identified the “unsteady path of private sector investment,” “stagnation of India’s manufacturing units,” and “decline of real wages and productivity” as key problems.
Private Sector Investment Concerns
Ramesh noted that private sector investment, after a brief recovery in 2022-23, has become unstable again. He highlighted a 21% decline in new project announcements between FY23 and FY24, attributing this to “inconsistent policymaking and Raid Raj” by the government.
Manufacturing and Export Stagnation
He criticized the “Make in India” initiative, stating that manufacturing’s share of GDP and employment has not improved over the past decade. He also pointed out that India’s share in global exports has stagnated, with a decline in garment exports from USD 15 billion in 2013-14 to USD 14.5 billion in 2023-24.
Decline in Real Wages and Productivity
Ramesh referred to the Annual Survey of Industries (ASI) for 2022-23, which showed a decline in real wages and productivity. He noted that the growth in GVA per worker slowed significantly, impacting real wage growth amid rising inflation, leading to weak consumption and low investment.
Doubts Revealed
Jairam Ramesh -: Jairam Ramesh is a senior leader of the Indian National Congress, a major political party in India. He has held various important positions in the government and is known for his expertise in economic and environmental issues.
Modi Government -: The Modi Government refers to the current government of India, led by Prime Minister Narendra Modi. He is a member of the Bharatiya Janata Party (BJP) and has been in power since 2014.
Private sector investment -: Private sector investment is when businesses and companies, not owned by the government, spend money to grow their operations. This is important for creating jobs and boosting the economy.
Stagnation in manufacturing -: Stagnation in manufacturing means that the production of goods in factories is not growing or improving. This can affect job creation and the overall economy.
Real wages -: Real wages refer to the amount of money people earn from their jobs, adjusted for inflation. If real wages are declining, it means people can buy less with the money they earn.
Make in India -: Make in India is a government initiative launched by Prime Minister Modi to encourage companies to manufacture their products in India. The goal is to boost the manufacturing sector and create jobs.
GDP share -: GDP share refers to the portion of the country’s total economic output that comes from a specific sector, like manufacturing. A higher GDP share means that sector is contributing more to the economy.
Garment exports -: Garment exports are clothes and textiles made in India and sold to other countries. A decline in garment exports means fewer clothes are being sold abroad, which can affect the economy.
Annual Survey of Industries -: The Annual Survey of Industries is a report that provides data on the performance of various industries in India. It helps understand trends in production, employment, and investment.