India’s economy and current challenges
India’s economy is facing many problems today. Congress leader Rahul Gandhi has recently expressed concern over this. He clearly stated that as long as the country’s economic benefits are limited to only a few billionaires, overall progress is not possible. According to him, a new thinking and equal opportunity to all sections is imperative for economic reform.
GDP decline: Alarm bell for the country
Rahul Gandhi underlined the decline in India’s GDP (gross domestic product) growth rate. Currently this rate is 5.4%, which is the lowest in the last two years. He described it as a “worrying situation” for the economy. The question arises: When GDP is going down, are we moving in the right direction?
Increasing impact of inflation
Surge in food prices
Retail inflation has reached a 14-month high of 6.21%. The prices of essential food items like potatoes and onions have increased by about 50% compared to last year. This situation is taking a toll on the pocket of every common man.
Falling level of rupee
The value of the Indian rupee has fallen to Rs 84.5 per dollar, which is at its lowest level. This weak currency highlights the dire state of our economy and increases dependence on imports.
Employment and unemployment: A big challenge
Unemployment rate at highest level in 45 years
Lack of employment has put many families in trouble. Unemployment has broken a 45-year record, and the lack of new employment opportunities has made it more severe.
Falling share of industry and construction sector
Rahul Gandhi said that due to demonetisation and GST (Goods and Services Tax), the share of India’s construction sector has come down to only 13%, which is the lowest level in 50 years. The lack of jobs is increasing due to the weakening of the construction sector.
Middle class and poor sections: Struggling life
Reduction in income and decline in demand
In the last five years, the income of laborers, employees and small businessmen has declined. This has directly affected the demand, which has slowed down the economic wheel. For example, the sale of cars priced below ₹ 10 lakh has come down from 80% to 50%.
Reduction in sales of affordable houses
The share of affordable housing schemes has come down from 38% to 22% in total sales. It is clear from this decline that it is becoming more difficult for the common people to buy a house.
Tax system and burden of common man
Fall in corporate tax
The share of corporate tax has decreased by 7% in the last 10 years, while personal income tax has increased by 11%. This imbalance reflects the increasing tax burden on the common man.
Fall in demand for FMCG products
The demand for everyday products is decreasing. This situation is proving to be detrimental for small and medium traders.
New thinking: Everyone needs equal opportunity
Rahul Gandhi believes that progress is not possible unless every person gets equal opportunity.
Why is a ‘New Deal’ necessary?
- Reduce economic inequality.
- Strengthen the middle class and the poor.
- Step towards sustainable and equitable development.
Our view on Rahul Gandhi’s new thinking
What could be the solution?
- Increase investment in agriculture and rural areas.
- Encourage manufacturing and small industries.
- Improve the education and health sector.
How can equal opportunity be achieved?
- Education and training opportunities for all.
- Emphasis on job creation.
- Implement a fair tax system.
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Conclusion
India’s economy is standing at a decisive turning point today. The issues raised by Rahul Gandhi are relevant for every Indian. If we work towards economic reforms and equal opportunities, India’s future will be bright.
FAQs
- What is the reason for the decline in India’s GDP?
Demonetization, GST, and low investment are the main reasons for this. - How can retail inflation be tackled?
Focus should be on increasing agricultural production and price control. - What is the impact of the falling value of the rupee?
Imports become expensive, which increases the burden on the common people. - What reforms are necessary for the middle class?
Tax relief, affordable housing schemes, and better employment opportunities. - What is Rahul Gandhi’s ‘New Deal’?
It is an economic reform plan based on giving equal opportunities to all sections.