Pvt investment, consumption dropped under Modi: Jairam

The Congress on Sunday said the reason behind falling consumption in India was sustained income stagnation, as an average Indian was buying less than he did 10 years ago.

Congress leader Jairam Ramesh said in a statement, “Assuming an average household size of four, the per capita income in rural areas is an estimate of Rs 2,886 per month. Therefore, a vast majority of Indians have very little money for discretionary consumption beyond that of basic necessities.”

He added that this sluggish rate of consumption had destroyed India’s medium-term and long-term economic potential, despite what the quarterly GDP numbers may suggest,” he added.

Ramesh said that the private sector would be unwilling to invest in new production without adequate growth in consumption.

The senior Congress leader urged the government to accept what the Congress had 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.