India's Economic Crossroads: Stagnation, Inflation, and Inequality Threaten Growth

India is facing a critical economic stage marked by wage stagnation, high inflation, and inequality. The Congress party warns these issues jeopardize long-term growth and consumption. Despite past gains, economic inequalities are peaking, middle-class consumption is shrinking, and private sector investments are faltering, impacting overall economic health.

India's economy is navigating through treacherous waters, as highlighted by the Congress party on Wednesday. General Secretary Jairam Ramesh emphasized wage stagnation, inflation, and inequality as main actors in undermining the country's consumption growth, historically a driver of economic development.

Ramesh revealed compelling data from multiple sources, including the 2022-2023 Annual Survey of Industries, confirming stagnant wages and increased cost burdens on the populace. This, he argues, stems from productivity declines, crony capitalism, and concentrated market power among industry giants, bolstering inequality.

With signs of a slowing economy, exemplified by decreased rural two-wheeler sales and unequal recovery post-pandemic, Ramesh warns of a diminishing middle class. The Congress insists on urgent government action, stressing that without addressing these chokepoints, India risks stalling its long-term growth trajectory.

(With inputs from agencies.)