Mismanagement of economy by Modi govt continues, vast majority of Indians suffering: Congress

The Congress expressed concern on Wednesday over the economic trends that have come out of a recent RBI bulletin and alleged that the economy has been mismanaged by the BJPled Centre due to which a vast majority of Indians are sufferingThe opposition party also expressed serious concern over the inflationary trends that have remained above the Reserve Bank of Indias RBI threshold level of 4 per centCongress general secretary Jairam Ramesh said the RBI bulletin of October 2023 shows extremely concerning economic trends and demonstrates the Narendra Modi governments continuing mismanagement of the countrys economyRamesh recalled that in the September bulletin a range of negative indicators were revealed including a 47year low in the savings growth rate a stagnation of domestic credit to the private sector and a flat labourforce participation rateAlso read Mumbai local train Over 2500 services cancelled is your route affected CheckThese trends either remain or have worsened A major reason for the low net savings growth is that there was a huge spike in household liabilities Despite the finance ministrys misleading claim that this spike is due to home and vehicle loans the September bulletin had clearly shown there was a 23 per cent spike in gold loans and a 29 per cent spike in personal loansThe October RBI bulletin confirms this fact personal loans were the single largest contributor to bank credit growth in August 2023 and grew at a massive 23 per cent while gold loans grew at 22 per cent the former Union minister said in a statementEach months RBI bulletin should serve as a reminder to the Modi government that as much as it tries to hide data and mislead the public the basic facts do not lie the economy has been completely mismanaged and the vast majority of Indians are suffering Ramesh saidIn fact for the last 15 months nonhousing personal loans have been growing at over 20 per cent something that has never happened in at least 15 years he claimedMeanwhile Ramesh said credit growth to the industrial sector which is essential for investment and economic growth is slowing down It was just 61 per cent yearonyear in August almost half of what it was last year and only onethird of the level in 2013The Congress leader also claimed that the share of bank credit to industry has been cut in half by the Modi government from 46 per cent of nonfood credit in 2013 to just 24 per cent in 2023Inflation remains out of control at 68 per cent way above the RBIs target of 4 per cent The RBI raised the issue of sustained inflationary pressures in cereals pulses and spicesThe vast majority of Indians continue to face the pressure of price rise on their incomes finding it difficult to meet basic food education and other necessities he claimedRamesh said while Prime Minister Modi lectures others on revdi freebies and fiscal responsibility the BJP governments fiscal deficit is ballooningIt has grown by almost 20 per cent over the past year to over Rs 64 lakh crore in Q1 of 202324 The Modi government is incurring debts that will weigh India down in the future and to show a smaller deficit is violating all principles of federalism by reducing tax transfers to states he saidThe spectacular failure of the governments Make in India initiative and the ineffectiveness of the productionlinked incentive PLI schemes are evident in the sluggish export growth in this quarter at less than 4 per cent the Congress leader saidThe worsthit by the export slump are MSMEs who face lower profits and higher costs This is not a new trend while from 20042014 exports grew at an average of 14 per cent per year under the Modi government export growth has more than halved at only 6 per cent he claimedThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever