Congress Raises Alarm Over Sluggish Manufacturing Growth Amid Economic Slowdown

The latest GDP figures reveal a decline in India's economic growth to 5.4% for Q2 2024-25, sparking criticism from Congress, particularly over lackluster private investment in manufacturing. Congress MP Jairam Ramesh censures the central government, highlighting stagnating manufacturing growth and rising unemployment in the sector.

In a pointed critique of the Central government's economic strategy, Congress MP and General Secretary for Communications, Jairam Ramesh, expressed deep dissatisfaction with the Modi administration's handling of manufacturing investment. His comments came in the wake of the GDP report for the July to September quarter of the 2024-25 fiscal year, which unveiled a concerning slump to a 5.4% growth rate.

Ramesh lambasted the touted policy benefits of tax cuts and production-linked incentives, arguing they failed to translate into tangible manufacturing growth. He referred to the 'Make in India' initiative as turning into 'Make-Believe in India', remarking on manufacturing expansion plummeting to 2.2%.

Highlighting worsening conditions in employment-heavy sectors like garments, Ramesh noted that exports have also stagnated, further dragging down economic vitality. He pointed to the detrimental impact of Chinese imports on local industries, particularly MSMEs in stainless steel, which have suffered closures.

(With inputs from agencies.)