Industry's share in GDP declining, but big business growing: Cong

The Congress on Monday accused the Modi government of focussing on big businesses and alleged that the growth of such business groups is not accelerating economic growth.

In a post on X, Congress general secretary (communications) Jairam Ramesh said the industry's share in GDP has been declining, just as concentration in the industry is increasing and this, in turn, is one of the main causes of inflation due to rising prices.

"While tall claims continue to be made by the PM and his drumbeaters on industrial growth, three facts are incontrovertible - Industry's share in GDP has been declining, just as concentration in industry has been increasing. This has raised prices for consumers and is one of the main sources of inflation," he claimed in his post.

 

Ramesh said within the 'G25' in Indian business, there is a 'G5' whose increasing share is coming at the expense of the remaining 'G20'.

"Big business groups are growing even bigger but that is not acclerating economic growth-- in fact, it may be doing the reverse," the Congress leader claimed and cited an article in this regard.

"Governments must bet big on small and medium business. Instead, the Modi Government is fixated on big business," Ramesh said.

The Congress has been accusing the government of promoting big business houses, alleging that it is engaged in crony capitalism.

Earlier, the opposition party also took on the government over its assertion that India is among the world's most equal countries and said the Modi government cannot simply wish away the stark reality of deepening inequalities by "doctoring data."  Congress' attack came after an official release, citing World Bank data, said inequality in India has come down significantly between 2011-12 and 2022-23, making it the fourth-most equal country globally.