India at Economic Crossroads: Addressing Stagnation

India faces economic challenges, with stagnating wages, inflation, and inequality stifling consumption growth. The Congress highlights these issues, warning that ignoring them will impede future growth. Stagnant wages, rising prices, and unequal recovery threaten India's economic health, needing urgent reform to boost private sector investment.

India is in its most challenging economic phase in years, according to the Congress, with wage stagnation, inflation, and inequality hindering consumption growth. These issues, if overlooked, could severely obstruct future economic progress, stated Congress spokesperson Jairam Ramesh.

Ramesh emphasized that for decades India's economic narrative was shaped by rising consumption, lifting millions out of poverty into the middle class. However, the last decade has seen this trend reverse, with even corporate leaders acknowledging the shrinking middle class.

The causes, according to Ramesh, are evident: stagnant wages, high inflation, and inequality, compounded by monopolies in critical sectors and cronyism. The resulting dip in consumer purchasing power and unequal recovery from the COVID-19 pandemic underline the urgent need for reform to reinvigorate private sector investment.

(With inputs from agencies.)