India's GDP Slows Amidst Stagnant Wages

Congress leader Jairam Ramesh highlights India's lower-than-expected GDP growth, attributing it to the stagnation of real wages. Using various data sources, he accuses the government of ignoring the reality faced by workers, which leads to sluggish private investment and stagnant consumption impacting economic potential.

India's GDP growth for the July-September 2024 period has fallen short of expectations, registering at 5.4%, while consumption increased by 6%, according to Congress leader Jairam Ramesh. Ramesh attributes this economic stagnation to stagnant wages, impacting millions of Indian workers.

Criticizing Prime Minister Narendra Modi for perpetuating a false sense of optimism, Ramesh referred to a report by India Ratings and Research, which highlighted how real wages, adjusted for inflation, have remained stagnant at the national level for five years. Additionally, real wages in states like Haryana, Assam, and Uttar Pradesh have declined.

Ramesh drew comparisons to past figures, noting that agricultural wages grew significantly under previous leadership but have declined under the current administration. He underscored the importance of wage growth in driving consumption and private sector investment, which remain sluggish under current economic policies.