New Delhi, Congress on Wednesday accused the government of "systematically hitting" India's MSMEs and claimed that 140 crore Indians are now paying the economic consequences of "cronyism, arbitrary policy-making and refusal to participate in constructively on the issues" of Prime Minister Narendra Modi. .
Congress general secretary Jairam Ramesh cited a new report by credit rating firm India Ratings to claim that the three impacts of demonetisation, "failed rollout of GST" and imposition of nationwide lockdown without prior notice They have been devastating to the economy.
The India Ratings report has confirmed what Congress has repeatedly warned: "the non-biological prime minister's systematic attack on India's MSMEs and informal businesses has been an economic catastrophe," Ramesh said.
"Three shocks in particular have been devastating: the non-biological Prime Minister's surprise demonetisation announcement on November 8, 2016, which virtually paralyzed all economic activity for the following months, without providing any clear economic and social benefits," he said. .
Ramesh also cited the "'failed implementation of GST' in July 2017, with a complicated tax structure, high compliance burden and punitive enforcement."
He said the third shock was the decision to impose a national COVID-19 lockdown on March 24, 2020, without prior notice, adequate preparation or an economic program to protect the informal sector.
"India Ratings has now put figures to some of the devastating effects of these three shocks: The unorganized sector contributes over 44% of India's gross value added (GVA). The unorganized sector grew at an annual growth rate (CAGR) of 7.4% between FY2011 and FY16, but has suffered an average annual contraction of 0.2% since then," the Congress leader said.
"By FY23, GVA of unincorporated businesses was 1.6% below FY16 levels. This downturn in the unorganized sector cost India 4.3% of its GDP or 1.3 lakh crore. 63 lakh informal businesses closed due to these three shocks, resulting in the loss of 1.6 million jobs,” he said, quoting the report.
At a time when record numbers of young people are entering the job market, the Modi government was destroying jobs, he claimed.
Despite all the hype and bluster of Make in India, jobs in the manufacturing sector fell from 3.6 crore in FY16 to 3.06 crore in FY23, Ramesh claimed.
"Manufacturing is India's ticket to solving unemployment and achieving sustainable middle-income status. The non-biological prime minister oversaw the destruction of India's manufacturing industry," he said.
Ramesh said the Congress has repeatedly warned the "non-biological prime minister" about these consequences.
"Dr Manmohan Singh came to Parliament to condemn demonetisation as 'organised looting and legalized looting'. Rahul Gandhi has repeatedly drawn attention to the devastation of GST on job-creating MSMEs, pointing out that it was neither a good tax nor a simple." he said.
In April 2020, after extensive consultations with stakeholders, Congress put forward a five-point program to revive the informal sector amid the COVID-19 pandemic, he said.
Ramesh noted that the party's Nyay Patra 2024 put forward strong proposals to revitalize the informal sector, including the establishment of GST 2.0, with a single, moderate rate and relief for small taxpayers like MSMEs. The party also proposed to reduce the tax burden on MSMEs owned by individuals and associated companies, he said.
The Congress also sought to ensure a level playing field and oppose the rampant monopolization and oligopolization that has displaced MSMEs, Ramesh said.
He said that "140 crore Indian rupees are now paying the economic consequences of non-biological cronyism, arbitrary policy-making and refusal to engage constructively in the Prime Minister's problems."
Congress general secretary Jairam Ramesh cited a new report by credit rating firm India Ratings to claim that the three impacts of demonetisation, "failed rollout of GST" and imposition of nationwide lockdown without prior notice They have been devastating to the economy.
The India Ratings report has confirmed what Congress has repeatedly warned: "the non-biological prime minister's systematic attack on India's MSMEs and informal businesses has been an economic catastrophe," Ramesh said.
"Three shocks in particular have been devastating: the non-biological Prime Minister's surprise demonetisation announcement on November 8, 2016, which virtually paralyzed all economic activity for the following months, without providing any clear economic and social benefits," he said. .
Ramesh also cited the "'failed implementation of GST' in July 2017, with a complicated tax structure, high compliance burden and punitive enforcement."
He said the third shock was the decision to impose a national COVID-19 lockdown on March 24, 2020, without prior notice, adequate preparation or an economic program to protect the informal sector.
"India Ratings has now put figures to some of the devastating effects of these three shocks: The unorganized sector contributes over 44% of India's gross value added (GVA). The unorganized sector grew at an annual growth rate (CAGR) of 7.4% between FY2011 and FY16, but has suffered an average annual contraction of 0.2% since then," the Congress leader said.
"By FY23, GVA of unincorporated businesses was 1.6% below FY16 levels. This downturn in the unorganized sector cost India 4.3% of its GDP or 1.3 lakh crore. 63 lakh informal businesses closed due to these three shocks, resulting in the loss of 1.6 million jobs,” he said, quoting the report.
At a time when record numbers of young people are entering the job market, the Modi government was destroying jobs, he claimed.
Despite all the hype and bluster of Make in India, jobs in the manufacturing sector fell from 3.6 crore in FY16 to 3.06 crore in FY23, Ramesh claimed.
"Manufacturing is India's ticket to solving unemployment and achieving sustainable middle-income status. The non-biological prime minister oversaw the destruction of India's manufacturing industry," he said.
Ramesh said the Congress has repeatedly warned the "non-biological prime minister" about these consequences.
"Dr Manmohan Singh came to Parliament to condemn demonetisation as 'organised looting and legalized looting'. Rahul Gandhi has repeatedly drawn attention to the devastation of GST on job-creating MSMEs, pointing out that it was neither a good tax nor a simple." he said.
In April 2020, after extensive consultations with stakeholders, Congress put forward a five-point program to revive the informal sector amid the COVID-19 pandemic, he said.
Ramesh noted that the party's Nyay Patra 2024 put forward strong proposals to revitalize the informal sector, including the establishment of GST 2.0, with a single, moderate rate and relief for small taxpayers like MSMEs. The party also proposed to reduce the tax burden on MSMEs owned by individuals and associated companies, he said.
The Congress also sought to ensure a level playing field and oppose the rampant monopolization and oligopolization that has displaced MSMEs, Ramesh said.
He said that "140 crore Indian rupees are now paying the economic consequences of non-biological cronyism, arbitrary policy-making and refusal to engage constructively in the Prime Minister's problems."
