Five Major Economic Setbacks Attributed to Modi Negatively Impacted India's Economy: Congress Statement
In a scathing critique, the Congress party has accused the current BJP-led government of causing significant economic disruptions over the past decade. The party's leaders, including former Congress President Rahul Gandhi and General Secretary Jairam Ramesh, have highlighted three major issues as the "Modi-inflicted shocks" that have devastated the Indian economy.
- Demonetisation: According to Gandhi and Ramesh, the sudden demonetisation of high-value currency notes in 2016 disrupted the growth momentum of the Indian economy and destroyed the livelihoods of millions.
- A Flawed GST: Ramesh has criticised the implementation of the Goods and Services Tax (GST) as a fundamentally flawed tax system. He described it as neither good nor simple, alleging that it has wreaked havoc on thousands of business enterprises, benefiting only large corporations that can afford the compliance costs.
- Record Imports from China: Ramesh has also pointed to the surge in imports from China as a significant issue. He claims that this has led to the closure of lakhs of Micro, Small, and Medium Enterprises (MSMEs) across the country, further exacerbating the economic woes.
These allegations come in response to remarks from former US President Donald Trump, who referred to the Indian economy as "dead." Rahul Gandhi has stated that he is glad that Trump has stated a fact, implying that the current state of the Indian economy is indeed a cause for concern.
The Congress party asserts that the government and its supporters are not presenting a true picture of the country's economic state. They argue that a future trade deal with the US would be defined by Donald Trump, with Prime Minister Modi complying with his terms.
While the Congress party has detailed five shocks in total, the available excerpts from recent reports only explicitly name these three major issues connected to the Congress critique on August 1, 2025. The other two shocks are not specified in the provided excerpts from the recent reports on this allegation.
In summary, the confirmed "Modi-inflicted shocks" per Congress as reported are:
| Modi-Inflicted Shock | Details | |-----------------------------|------------------------------------------------------------------------------------------| | Demonetisation | Disrupted growth and destroyed livelihoods | | Flawed GST | Complex tax that harmed thousands of businesses except big companies | | Record Imports from China | Led to closure of many MSMEs |
The other two shocks are not specified in the provided excerpts from the recent reports on this allegation.
- The Congress party argues that the current state of the Indian economy, as criticized by former US President Donald Trump, is a result of the BJP-led government's policies and legislation in the field of finance and business over the past decade.
- Rahul Gandhi, the former Congress President, has expressed concern over the high levels of imports from China, suggesting that this has negatively impacted the health of Micro, Small, and Medium Enterprises (MSMEs) in India.
- Jairam Ramesh, the General Secretary of the Congress party, has pointed to the implementation of the Goods and Services Tax (GST) as a significant contributor to the economic downturn, claiming that it has proved to be a flawed system that primarily benefits large corporations at the expense of small businesses.
