Congress calls on Modi government to address economic inequality with bottom-up empowerment

The Congress party has called on the Modi government to bring about drastic changes in its economic policies, with a focus on moving away from "cronyism"—benefiting a few individuals—to "bottom-up empowerment." The party contends that tackling growing economic inequality and weak consumer spending necessitates a focus on raising rural incomes and introducing a legally assured Minimum Support Price (MSP) for farmers.

Congress leader Jairam Ramesh cited "Indus Valley Annual Report 2025" by VC firm Blume Ventures to bring forward concerns regarding the economic scenario in India. India's per capita consumer expenditure is a paltry ₹1,493—just one-third of China's, as per the report. Basic lifestyle products like two-wheelers, air conditioners, footwear, and fast-moving consumer goods (FMCG) are all facing slow consumption. India's contribution to global sales of air conditioners, for example, is just 7%, while China contributes 55%.

A growing economic gap

Ramesh noted that India's "consumption class" consists only of 30 million households, about 10% of the total population. Another 70 million families are part of the "aspirant class," with very little spending power. The most disturbing figure is 205 million households that have no disposable income above absolute needs, adding up to practically 1 billion individuals.

Ramesh emphasized that economic growth is not broadening to reach a wider group of people. Indicators like two-wheeler sales and air passenger traffic have leveled off, adding to fears of increasing wealth inequality. "India's growth story is still exclusive to the richest class," he said, citing several data points which reaffirmed the expanding economic divide.

From beneficiaries to empowered citizens

Condemning the government's strategy, Ramesh said, "Most Indians can only afford basic needs and are treated as mere 'beneficiaries' of government programs and not empowered economic citizens." He urged the policy-making process to move away from cronyism towards economic empowerment at the grassroots level. "The first step is to increase rural incomes, including hiking MGNREGA wages above inflation levels."

Congress leader Abhay Dubey reiterated the party's call for legally ensured MSP. He mentioned the Parliamentary Standing Committee on Agriculture's report of December 17, 2024, which said that without a legal mandate, farmers will continue to face struggles.

Dubey pointed to problems in soybean cultivation, saying, "Maharashtra and Madhya Pradesh, together producing 90% of India's soybeans, have farmers selling their produce at a rate lower than the MSP of ₹4,892 per quintal. The government needs to deal with this immediately."

A big challenge for government

Congress criticism is a big challenge for the government's economic course of action. The party is adamant that if the rural economy is not boosted and consumer spending power is not increased, India's growth story will be incomplete. The existing policies, according to them, disproportionately favor the rich at the expense of the remainder of the population.