Economic Survey Presents Cherry-Picked View Of Economy, Budget Should Face Up To Realities: Congress

The Congress slammed the Economic Survey, accusing Modi govt of presenting a 'rosy picture' of the economy. It highlighted concerns over unchecked food inflation, lagging private investment, and unemployment.

The Congress on Monday expressed strong disapproval of the Economic Survey 2023-24, released a day ahead of the Union Budget. In a statement issued on 22nd July 2024, Jairam Ramesh, MP and General Secretary (Communications) of the All India Congress Committee (AICC), accused the government of presenting an overly optimistic view of the economy while ignoring pressing issues faced by the nation.

"The Economic Survey must have been a difficult document for the non-biological PM's spin doctors to produce. It does its best to present an 'all is well' rosy picture of the economy. Unfortunately for the PM and for the people of India, the economic situation is so desperate that some harsh facts come through anyway," Ramesh quipped.

The Congress highlighted several key issues such as Food Inflation, Private Investment, and Unemployment.

Ramesh noted that food inflation remains unchecked at nearly 10% per year, with specific items such as cereals, vegetables, spices, and milk witnessing sharp price increases. "It is the poor and middle class who are worst affected by this," Ramesh noted.

The economic recovery post-COVID has been deeply unequal, with rural India being left behind, the Congress stated as it highlighted that sales of two-wheelers in rural areas, a key indicator of consumer demand and economic growth, are still lower than in 2018.

According to the Congress, "The Modi government's anti-farmer mindset is called out in the Economic Survey. Its abuse of import-export policy with unplanned and unjustified export bans and floods of cheap imports, has been flagged for debilitating farmer incomes."

"Wheat, paddy, pulses, onion, sugar, and edible oils - no farmer has been spared by the whimsy of the Government's policymaking," said Ramesh.

The grand old party opined that the failure of trade policy has contributed to the decline of India's manufacturing capabilities, with the percentage of imports from China rising from 11% in 2014 to 16% currently. "The uncontrolled dumping of these imports has rendered domestic MSMEs uncompetitive, forcing them to shut down," Ramesh stated.

He stated that residential real estate sales in 2023 are only now reaching the levels witnessed in 2013, indicating a sluggish housing sector.

The Congress further claimed that the survey admits the failure in generating private investment despite significant handouts, such as the Rs. 1.5 lakh crore corporate tax cut and the Rs 2 lakh crore PLI scheme. "While the sops have contributed to record profitmaking, private investment has not risen," Ramesh commented.

Unemployment Situation Is The Greatest Failure Of Modi Government: Congress

Slamming the Modi government's performance on alleviating unemployment, the opposition party termed it "the greatest failure of the Modi Government".

"The Economic Survey has flagged that we must create nearly 80 lakh jobs each year for the next 20 years. The Survey also points out that "manufacturing sector employment creation has been subdued in the past decade," despite the hype and hoopla of Make in India. What is not said, however, is that the Union Government's current strategy is entirely reliant on data manipulation and pakodanomics. Achieving the 80 lakhs job target requires a decided shift in the Government's larger economic strategy," Ramesh stated.

The Congress also criticised the government's claim that abject poverty has been nearly eliminated. "Half of all Indians cannot even afford three meals per day. One in three children are stunted, and one in four are not fully immunised, according to the NFHS-5. Approximately two-thirds of the country relies on free foodgrains provided under the National Food Security Act," Ramesh pointed out.

Concluding the statement, Ramesh urged the Finance Ministry to consider the Congress's Nyay Patra 2024, which advocates for the Right to Apprenticeship, protections for gig workers and unorganised sector workers, minimum wage hikes to Rs. 400 per day, an end to tax terrorism, and the expansion of social protection schemes like Anganwadis.

"India is in its most precarious and difficult economic situation in many years. The Economic Survey 2023-24 might present a cherry-picked view of the economy, but we hope that tomorrow’s Budget faces up to the country’s realities," the Congress party stated.