Rahul said- GDP fell, inflation increased: Indian economy benefits only a few billionaires; unemployment breaks 45-year record
Congress leader Rahul Gandhi on Sunday expressed concern over India’s declining GDP rate in X post. He wrote – As long as a handful of billionaires continue to benefit from the country’s economy, the economy cannot move forward.
He wrote – India’s GDP growth rate has come down to 5.4%, the lowest in two years. It is clear that the Indian economy cannot progress as long as its benefits are being reaped by only a few billionaires. Farmers, laborers, middle class and the poor are facing various economic problems.
Rahul said that the rupee has reached its lowest level of 84.50 against the dollar. Unemployment has already broken the record of 45 years. In the last 5 years, the income of laborers, employees and small traders has either stagnated or has reduced significantly.
Issues included in Rahul’s X post…
- Retail inflation has risen to a 14-month high of 6.21%. The price of potatoes and onions increased by about 50% this year compared to October last year.
- Due to reduced income, demand has also decreased. The share of cars priced below Rs 10 lakh in sales has come down to less than 50%, which was 80% in 2018-19.
- The share of affordable houses in total sales has come down to around 22%, which was 38% last year. The demand for FMCG products is already decreasing.
- The share of corporate tax has decreased by 7% in the last 10 years, while income tax has increased by 11%.
- The share of manufacturing in the economy has come down to just 13%, the lowest in 50 years, due to demonetization and GST. In such a situation, how will new job opportunities be created?
- Data from National Statistical Office- GDP growth fell to 5.4% between July and September, the lowest in 21 months
The National Statistical Office released data on November 29 and said that India’s GDP growth has come down to 5.4% in the July-September quarter of FY 2025. This is the slowest growth in seven quarters. GDP growth has slowed due to poor performance of the manufacturing sector.
Earlier, the growth was 4.3% in the third quarter of 2023. At the same time, it was 8.1% in the same quarter a year ago (Q2FY24). In the previous quarter i.e., Q1FY25, it was 6.7%. India’s GVA grew at the rate of 5.6% in the July-September quarter. GVA growth was 7.7% in the same quarter a year ago. At the same time, GVA growth was 6.8% in the previous quarter.
Sector wise growth on year-on-year basis (FY25 Vs FY24)
- Mining Growth: -0.1% Vs 11.1%
- Manufacturing Growth: 2.2% Vs 14.3%
- Electricity Growth: 3.3% Vs 10.5%
- Construction Growth: 7.7% Vs 13.6%
- Agriculture Growth: 3.5% Vs 1.7%
- Trade, Hotel Growth: 6% Vs 4.5%
- Finance and Real Estate Growth: 6.7% Vs 6.2%
- Public Admin and Service Growth: 9.2% Vs 7.7%
India still the fastest growing economy among major countries Despite slow GDP growth, India still remains the fastest growing economy among major economies. China’s GDP growth stood at 4.6% in the July-September quarter this year. On the other hand, Japan’s GDP has grown at the rate of 0.9%.
GDP measures the value of goods and services. GDP i.e. Gross Domestic Product measures the total value of goods and services produced in the country within a period. It also includes foreign companies which produce within the country’s borders. GDP tells the health of the economy.
GDP is of two types, real and nominal GDP. In real GDP, the value of goods and services is calculated on the base year’s value or stable price. Currently, the base year for calculating GDP is 2011-12. On the other hand, nominal GDP is calculated on the current price.
Rahul Gandhi had said – Demonetization destroyed MSME
Rahul Gandhi had targeted the Modi government on the completion of 8 years of demonetization on 8 November. He had said – Demonetization has promoted monopoly by destroying MSME and the informal sector. India is using more cash today than it did 8 years ago.
Rahul had said that inefficient and ill-intentioned policies that create an atmosphere of fear for businesses will destroy India’s economic potential.
