The wrong message

Rahul Gandhi's Gujarat campaign is not adding to his credibility

Following a report that the production of the Nano car in Tata Motors’ Gujarat plant had crashed, Congress Vice-President Rahul Gandhi argued – while campaigning in that poll-bound state – that it revealed the “death” of “Make in India”. Mr Gandhi further stated that Rs 33,000 crore of Gujarati money had been given as inducements to Tata Motors with respect to Nano’s production in the state, and that had been turned to “ash”. He demanded that Prime Minister Narendra Modi, who was chief minister of Gujarat when the high-profile Nano project was moved there from West Bengal, be held accountable. Mr Gandhi’s argument may have some resonance with voters, but there are some obvious holes in it. For one, it is not as if the Tata Motors plant in Sanand has stopped operations; it is merely that it no longer makes that particular model of car. Another model, the Tata Tiago is made there now. In fact, in October Tata Motors announced that the 100,000th Tiago had rolled out of Sanand in just 18 months since the model was introduced. For another, it is not as if Mr Modi’s government is alone in handing out inducements to companies to relocate. If job creation is a priority, then many state governments will compete for factories — as had happened in the case of the Nano project. Gujarat just happened to win the race at that time. 

Yet Mr Gandhi’s rhetoric deserves careful attention, for it reveals the contours of the Congress’ attacks on the Bharatiya Janata Party’s approach to policy. And what it reveals is disquieting; it does not appear as if the Congress will provide a trustworthy, market-friendly, forward-looking alternative approach to economic management even as questions proliferate about the BJP’s economic steps. Mr Gandhi embedded his criticism of Mr Modi’s inducements to Tata Motors within a larger critique in which he argued that while big business might receive Rs 33,000 crore, fishermen demanding subsidised fuel would not even receive Rs 300 crore, or farmers would fail to receive a loan waiver. This is the old “suit-boot sarkar” line of attack given new life. Earlier, Mr Gandhi claimed that Mr Modi relied on big business for the development of states like Gujarat while the Congress would prioritise co-operatives like Amul or small businesses that were struggling with the implementation of the goods and services tax. This betrays a failure to understand the needs of a modern economy — particularly in a globalised state like Gujarat. Employment generation on a large scale needs big business to step up.

Mr Gandhi and his party need to consider what message they intend to send out in the run-up to the 2019 general elections. Already, the Congress and its vice-president labour under a credibility deficit. Statements that appear to be unthinkingly populist – broadened reservations, promising sops and subsidies, attacks on business – are hardly likely to address that problem. Not surprisingly, Mr Modi has already turned the tables on him by stating in an election campaign speech in Rajkot on Monday that the repeated attacks on his humble origins exemplify the Congress’ elitist mindset. He also advised the Congress not to “stoop so low,” in an apparent reference to the latest controversy when the Congress’ youth wing mocked him as a chaiwala in a meme it later deleted. Mr Gandhi should focus on bigger issues, instead of gloating over the demise of a car project. That hardly sits well on someone who seeks to lead India.