Stagnant Wages Blamed as India's GDP Growth Plummets to 5.4%

Congress criticizes the Modi government over disappointing GDP growth figures for July-Sept 2024, citing stagnant wages as a key issue. A recent report highlights wage stagnation and its impact on consumption and investment. The government aims to boost private investment amid concerns over long-term economic potential.

The Congress party has expressed severe disappointment over the newly released GDP growth figures for the July-September 2024 period, which it claims are 'much worse than anticipated.' The blame, according to party leader Jairam Ramesh, lies in the 'stagnant wages' affecting millions of Indian workers.

Ramesh accused Prime Minister Narendra Modi's administration of turning a blind eye to the 'grim reality' of economic deceleration. The country reported a modest 5.4% GDP growth with consumption increasing by just 6%. Ramesh highlights a report by India Ratings and Research, that attributes this slowdown largely to negligible real wage growth over the past five years.

Real wages in several states, including Haryana and Assam, have seen a decline, further deteriorating consumer purchasing power. Despite an ambitious government outlook to stimulate private sector investment to 35% of GDP, the report suggests that sluggish private investment remains a significant barrier to accelerated economic recovery.

(With inputs from agencies.)