Rahul Gandhi: India’s GDP Growth Slows to 5.4%, Economic Concerns Mount

Rahul Gandhi: India's economic growth has hit a two-year low, with GDP growth slowing to 5.4%. Economists and policymakers are raising concerns over the state of the economy, particularly its uneven benefits that seem to favor a select few, leaving farmers, laborers, the middle class, and the poor grappling with economic hardships.

Key Economic Indicators Highlight Worsening Conditions

1. Rising Inflation:
   Retail inflation has surged to a 14-month high of 6.21%, with the prices of essentials like potatoes and onions rising by nearly 50% compared to last October.
2. Currency Devaluation:
   The Indian Rupee has fallen to an all-time low of ₹84.50, impacting import costs and consumer purchasing power.
3. Unemployment Crisis:
   Unemployment rates have reached a 45-year high, exacerbating financial challenges for workers across sectors.
4. Declining Incomes and Demand:
   Over the past five years:
   • Wages and earnings for laborers, employees, and small business owners have stagnated or dropped.
   • Demand for affordable products has decreased. For example:
     • Sales of cars priced under ₹10 lakh have fallen to below 50% of total car sales, compared to 80% in 2018-19.
     • Affordable housing sales have plummeted to 22% from 38% last year.
     • FMCG demand continues to decline.
5. Shift in Tax Burden:
   Over the last decade:
   • The share of corporate taxes has fallen by 7%.
   • The share of income taxes has risen by 11%, disproportionately affecting middle-income earners.
6. Manufacturing Sector Decline:
   The share of manufacturing in the GDP has dropped to 13%, the lowest in 50 years, partly due to the dual impact of demonetization and GST implementation.

A Call for Rethinking Economic Policies

Experts suggest that India's economic policies need a New Deal for Businesses to ensure equitable growth. By creating opportunities for all, including the most vulnerable sections of society, India can achieve sustainable economic progress. A balanced approach that boosts demand, incentivizes manufacturing, and addresses rising inequalities is essential for driving the economy forward.

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