Congress Blames Government Policies for Declining Labour-Intensive Growth

The Congress party has criticized the central government for harming MSMEs through poor policies, demonetisation, and a flawed GST rollout. They claim this has shifted the economic focus away from labour-intensive growth. Factors like inflation and oligopolies are also blamed for stifling job creation and consumption growth.

The Congress party has launched a sharp critique against the national government, attributing the decline in labour-intensive growth to negligent policymaking and several economic missteps. These include the controversial demonetization, a flawed Goods and Services Tax (GST) rollout, and the unplanned Covid-19 lockdown, alleged Congress General Secretary Jairam Ramesh.

Ramesh referenced a newspaper article uncovering a paradox: rising GDP numbers failing to translate into job creation or increased rural wages. According to the latest Annual Survey of Industries (ASI) 2022-2023, reduced real wages can partly be linked to a fall in labour productivity, said Ramesh. He noted slowing growth in GVA per worker—down from 6.6% in 2014-15 to 0.6% by 2018-19.

A post-Covid dip marked another contraction in worker productivity for FY23. The Congress argues these trends are not accidental but are products of strategic government policy. By allegedly fostering oligopolies and prioritizing capital-intensive growth, the government is accused of sidelining competition and raising prices. The Congress warns that ignoring issues like wage stagnation, inflation, and inequality may threaten future growth.

(With inputs from agencies.)