– Abdul Bari Masoud
New Delhi: The Congress party on Thursday sharply criticised the government for its handling of the economy, accusing it of masking harsh economic realities.
Senior Congress leader and former Finance Minister P. Chidambaram, alongside AICC Research Department Chairman Prof. Rajeev Gowda and Social Media and Digital Platforms Chairperson Supriya Shrinate, unveiled the “Real State of the Economy 2025” report, which outlines the country’s worsening economic situation.
Chidambaram warned of a deep economic slowdown, marked by job losses, soaring inflation, and stagnating wages, amid growing economic disparity. He projected that economic growth may decline by up to 2% compared to the previous year.
Highlighting the employment crisis, he noted that unemployment stands at a staggering 40%, with graduate unemployment reaching nearly 30%. He criticised the government’s claim of job creation, stating that many of the jobs being highlighted were merely vacancy fulfilments rather than newly created positions.
On inflation, Chidambaram said it remains “raging”, while wages have remained stagnant for four to five years. He pointed out that over the past two to three years, inflation in food, education, and healthcare has remained in double digits.
Addressing economic inequality, he revealed that 70% of the population survives on just ₹100 to ₹150 per day. He accused the government of failing to address the growing wealth gap.
Further, citing budget analyses from the past six to seven years, Chidambaram highlighted consistent cuts in government spending on healthcare, education, social welfare, and rural development since 2017–18. He warned that funding for crucial welfare programmes has seen drastic reductions.
Prof. Rajeev Gowda said India has moved beyond a phase of “jobless growth” to an even more alarming trend of “job destruction growth.” He observed that higher education does not guarantee employment anymore, as educated individuals are finding it increasingly difficult to secure jobs.
He attributed rising unemployment to the decline in manufacturing jobs, blaming policies such as demonetisation and the flawed GST implementation. He warned that India’s growth rate has shrunk to an average of 6%, putting the country at risk of falling into the “middle-income trap.”
Supriya Shrinate emphasised the human impact of economic distress, citing rising inflation and unemployment. She noted that while the Modi government had aimed to increase manufacturing’s share of GDP to 25% by 2022, it has remained stagnant at 15%.
Comparing economic performance, she pointed out that under 10 years of the NDA government, GDP growth has slowed to 6%, whereas it stood at 7.6% during the UPA’s tenure.
In a pointed remark, she accused the ruling government of failing the very people they once claimed to protect.
Congress leader Jairam Ramesh took to X to highlight the impact of government policies on the social sector. He criticised budget cuts, stating:
PM-POSHAN allocations for mid-day meals and school nutrition programmes have declined to just 0.26% of the Union Budget. MGNREGS funding has hit a 10-year low, with a shortfall of ₹4,315 crore, leading to delayed wage payments. Allocations for higher education have plummeted to 0.88%-1.27% of the budget.
Ramesh stated: “The results are clear – stagnant wages, faltering private investment, sluggish growth, and mass unemployment. Will the Union Budget take a corrective turn?”
