'Double engine' of private investment, mass consumption ' derailed' under Modi govt: Congress
Congress on Sunday claimed that India was facing a «demand crisis» due to sustained income stagnation and said the 'double engine' of private investment and mass consumption that powered the UPA's decade of sustained GDP growth has been «derailed» in the last ten years of the Modi government. Congress general secretary in-charge communications Jairam Ramesh urged the government to accept what the Congress has been proposing — raising MGNREGA wages to a minimum of Rs. 400 per day, guaranteeing MSP and a loan waiver for farmers, and a monthly income support scheme for women — to kickstart income growth in rural India.
He said that with each passing day, the tragedy of India's dying consumption story becomes more evident.
Last week, several CEOs from India Inc raised the alarm over the 'shrinking' middle class and now, new data from NABARD's All India Rural Financial Inclusion Survey (NAFIS) 2021-22 adds to the evidence that India's demand crisis is a result of sustained income stagnation, he said in a statement.
Citing key takeaways from the survey data, Ramesh said the average monthly household income for Indians is Rs 12,698 to Rs 13,661 for agricultural households and Rs 11,438 in non-agricultural households.
«Assuming an average household size of 4.4, the per capita income in rural areas is an estimate Rs. 2,886 per month — less than Rs 100 a day. The vast majority of Indians therefore have very little money for discretionary consumption beyond that of basic necessities,» Ramesh said, citing the data.
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