Congress leader Jairam Ramesh tweeted serious concerns on Twitter (X) about the state of India’s economy based on an analysis published in The Indian Express. He pointed out that the slowdown in the country’s GDP growth is not a temporary issue but a sign of deeper problems.
Ramesh attacked the government for trying to blame the Reserve Bank of India’s policies, such as interest rates and currency interventions, instead of taking responsibility for the slowdown.
He said "An excellent piece in Monday's Indian Express which 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 RBI’s interest rate regime and foreign exchange market interventions is an attempt to escape responsibility
• 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
• The middle class is shrinking. The shift in the automotive industry is clear evidence: the low-priced, small car markets (the sub Rs 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
• 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"
The tweet has sparked discussions about the government’s handling of the economy and what needs to be done to fix these problems.