Inequality and Low Consumption: A Deep Dive into India's Economic Challenges

The Congress highlighted concerns about India's low consumption expenditure and economic inequality. They called for a shift in policy focus from cronyism to empowering the rural population. Data from the Indus Valley Annual Report 2025 shows a high disparity in income and spending abilities among India's population.

The Congress has raised concerns over India's lagging consumption expenditure and growing inequality. According to Congress general secretary Jairam Ramesh, the nation must move from crony policies to grassroots empowerment, starting with boosting rural incomes.

Ramesh referenced the Indus Valley Annual Report 2025, produced by Blume Ventures, which offers a detailed exploration of India's economic environment. The report highlights India’s per capita consumption expenditure at a mere USD 1,493, significantly less than a third of China’s.

Congress addressed the stagnation in the 'consuming class' and the serious disparity in purchasing power. They urged immediate policy focus on real wage growth and rural income enhancement, as nearly 1 billion Indians cannot spend beyond basic necessities, leading to widespread economic disparity.