Fri Nov 15 11:00:00 UTC 2024: ## Congress Claims Stagnant Income is Killing India’s Consumption Story
**New Delhi:** The Congress party on Sunday alleged that the average Indian’s purchasing power has declined over the past decade due to sustained income stagnation.
Congress general secretary Jairam Ramesh, citing data from various sources including the NABARD’s All India Rural Financial Inclusion Survey and the Labour Bureau’s Wage Rate Index, pointed to a worrying trend of stagnant or declining real wages across different sectors, including agriculture and manufacturing. He argued that this income stagnation is directly impacting consumption, leading to a “demand crisis” that threatens India’s long-term economic potential.
“The average Indian can buy less today than they could 10 years ago,” Ramesh stated, adding that the “double-engine” of private investment and mass consumption, which fueled India’s economic growth during the Congress-led UPA era, has been derailed under the current government.
Ramesh further criticized the government for its failure to address the issue, claiming that the private sector is reluctant to invest in new production due to the lack of a robust consumer market. He called for urgent government intervention, specifically advocating for increased minimum wages, guaranteed MSP for farmers, and a monthly income support scheme for women.
“This slowdown in consumption is destroying our medium-term and long-term economic potential,” Ramesh asserted. “Without adequate growth in consumption to assure them of a market for their products, India’s private sector will be unwilling to invest in new production.”
The Congress party has been vocal in its criticism of the government’s economic policies, citing concerns over rising unemployment and inflation. This latest statement further highlights the party’s concerns about the state of the Indian economy and the need for decisive action to address the issue of income stagnation and its impact on consumption.
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