Congress leader Jairam Ramesh has sharply criticized the Modi government's economic policies, claiming that the "Make in India" initiative has become a mere illusion ("Make-Believe in India"). This comes after the release of the quarterly GDP growth report for July-September 2024-25, which revealed a slowdown to 5.4 percent.
Ramesh pointed out that the government's emphasis on tax cuts and production-linked incentives has failed to translate into real growth in manufacturing. He argued that the "Make in India" promise, launched a decade ago, has not materialized, with both manufacturing and exports struggling.
The Congress MP highlighted several concerning figures from the GDP report. Manufacturing growth has plummeted to a shocking 2.2 percent, while export growth has also decelerated to 2.8 percent. This data, according to Ramesh, contradicts the government's claims of India becoming a global manufacturing hub.
He further emphasized the decline in India's manufacturing sector share in the Gross Value Added (GVA) from 18.1 percent in 2011-12 to 14.3 percent in 2022-23. Ramesh also cited a decrease in manufacturing jobs, with workers falling from 51.3 million in 2017 to 35.65 million in 2022-23.
Ramesh specifically mentioned the garment sector, where exports have fallen from $15 billion in 2013-14 to $14.5 billion in 2023-2024. He pointed out that countries like Bangladesh and Vietnam have surpassed India in this sector.
He also accused the government of failing to protect Indian manufacturers from cheap imports, particularly from China. He cited the example of the stainless steel industry where over a third of Micro, Small and Medium Enterprises (MSMEs) in Gujarat have been forced to shut down due to Chinese imports.
Ramesh drew a comparison between India's current export performance and its status during the Manmohan Singh government. He claimed that India's share of global exports grew much faster between 2005-15, suggesting a more robust economic model at that time.
