Disappointing Q2 GDP numbers aren’t a blip but clear slowdown in economy: Jairam Ramesh

Congress criticizes government for economic slowdown, rising inequality, and stagnant wages, launching 'White T-shirt Movement' for economic justice.

The Congress on Wednesday (January 22, 2025) claimed that it is becoming clear that the "disappointing" Quarter 2 Gross Domestic Product (GDP) growth numbers are not a blip but a clear slowdown in the economy and the post-pandemic bump is not broad-based enough to power long-term growth.

Congress general secretary in-charge communications Jairam Ramesh cited an article in a newspaper which claimed that the fallout of limited job creation and muted wage growth can be seen in the greater recourse to debt. Mr. Ramesh said the article confirms the growing concerns on the Indian economy.

“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 Reserve Bank of India’s (RBI) interest rate regime and foreign exchange market interventions is an attempt to escape responsibility,” he 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,” Mr. Ramesh said, citing the article.

"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.

"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," Mr. Ramesh said.

India's economic growth slowed to near two-year low of 5.4% in the July-September quarter of this fiscal owing to poor performance of manufacturing and mining sectors, but the country continued to remain the fastest-growing large economy.