Average Indian can buy less than they could 10 years ago: Congress

Congress criticizes Modi government for income stagnation leading to decreased consumption, hindering economic growth and private sector investment.

The Congress on Sunday (November 10, 2024) claimed that the average Indian can buy less today than they could ten years ago, saying that the cause for the slowdown in India’s consumption is the result of sustained income stagnation.

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In a statement, Congress general secretary (communications) Jairam Ramesh said, “Assuming an average household size of 4-4, the per capita income in rural areas is an estimate of Rs 2,886 per month. Therefore, vast majority of Indians have very little money for discretionary consumption beyond that of basic necessities.”

“This slowdown in consumption is destroying our medium-term and long-term economic potential whatever the quarterly GDP numbers may suggest,” he added.

Mr. Ramesh said that the private sector will be unwilling to invest in new production without adequate growth in consumption.

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“As the Government’s own Economic Survey (2024) acknowledged that private sector GFCF in machinery, equipment and intellectual property products has grown cumulatively by only 35% in the four years to FY23. This is not a healthy mix,” he said.