Congress leader Jairam Ramesh on Wednesday took a veiled dig at the BJP-led central government saying report by credit ratings firm India Ratings has confirmed what the grand old party has warned that about how non-biological Prime Minister’s systematic bludgeoning of India’s MSMEs and informal businesses has been an economic catastrophe.
In a statement, Ramesh, who is also party’s general secretary and communications in-charge said, “A new report by credit ratings firm India Ratings has confirmed what the Indian National Congress has repeatedly warned: the non-biological Prime Minister’s systematic bludgeoning of India’s MSMEs and informal businesses has been an economic catastrophe. Three shocks in particular have been devastating.”
Coming down heavily on the government, the Congress leader said that the non-biological Prime Minister’s surprise announcement of demonetisation on November 8, 2016, which virtually halted all economic activities for the following months, without bringing any clear economic and social benefits.
He also pointed out that how the botched roll-out of the GST in July 2017, with a convoluted tax structure, high compliance burden, and punitive enforcement and the non-biological PM’s decision to impose a nationwide COVID-19 lockdown on March 24, 2020 – without prior notice, adequate preparation, or an economic program to protect the informal sector.
Ramesh pointed out that India Ratings has now put numbers to some of the devastating effects of these three shocks — unorganised sector contributes 44+ per cent to India’s Gross Value Added (GVA).
“The unorganised sector grew at 7.4 per cent Compound Annual Growth Rate (CAGR) between FY11 and FY16, but has suffered an average yearly contraction of 0.2 per cent since then. By FY23, GVA by unincorporated businesses was 1.6 per cent below FY16 levels. This recession in the unorganised sector cost India 4.3 oer cent of its GDP or Rs 1.3 lakh crore,” he said.
Citing the report, he also said that 63 lakh informal enterprises shut down due to these three shocks, leading to the loss of 1.6 crore jobs.
“At a time when a record number of youth are entering the labour markets, the Modi Government was destroying jobs,” he said citing the report.
Ramesh also highlighted that for all the hype and bluster of Make in India, manufacturing jobs reduced from 3.6 crore in FY16 to 3.06 crore in FY23.
“Manufacturing is India’s ticket to solving unemployment and reaching a sustainable middle-income status. The non-biological PM oversaw the destruction of India’s manufacturing.
The Indian National Congress has repeatedly warned the non-biological PM of these consequences. Dr. Manmohan Singh took to Parliament to decry demonetisation as ‘organised loot and legalised plunder’,” he said.
Ramesh also said that Rahul Gandhi has repeatedly drawn attention to the GST’s devastation of job-creating MSMEs, pointing out that it was neither a Good nor a Simple Tax. “In April 2020, after wide consultations with stakeholders, the INC put out a five-point program to revive the informal sector amidst the COVID-19 pandemic,” he said.
Highlighting that how the party’s Nyay Patra 2024 put forth strong proposals to revitalise the informal sector — establish GST 2.0, with a single, moderate rate and relief for small taxpayers like MSMEs, lessen the burden of tax on MSMEs owned by individuals and partnership firms and ensure a level-playing field and oppose the rampant monopolisation and oligopolisation that has crowded out MSMEs.
Ramesh also said that 140 crore Indians are now paying the economic consequences of the non-biological Prime Minister’s cronyism, arbitrary policymaking, and refusal to engage constructively on issues.
