The Congress party has launched a sharp attack on the central government, alleging that five major policy missteps under Prime Minister Narendra Modi’s leadership have significantly harmed the Indian economy. At a recent press briefing, senior Congress leaders outlined what they referred to as “five economic shocks” that have impacted livelihoods, slowed growth, and widened inequality across the country.
According to Congress, the first major setback was the demonetisation exercise carried out in November 2016. The party said the sudden withdrawal of high-value currency notes disrupted the informal sector, destroyed small businesses, and caused job losses, particularly among daily wage workers and rural communities.
The second shock, the party said, was the implementation of the Goods and Services Tax (GST) in 2017. While the intention behind GST was simplification and unification of the tax system, Congress argued that its hasty rollout and complex structure created confusion among businesses, especially small and medium enterprises. The party claimed that compliance burdens and delayed refunds continue to strain small traders.
The third blow, according to the Congress leadership, was the government’s handling of the COVID-19 pandemic and the sudden lockdown in 2020. The abrupt closure, they said, left millions of migrant workers stranded and jobless, with limited support mechanisms in place. Congress alleged that the lack of adequate financial relief further deepened the crisis for the working class and rural poor.
The fourth issue highlighted by the opposition was the continued economic slowdown and what they termed as “flawed reforms” in labour and agricultural policies. Congress leaders said that changes introduced without proper consultation hurt workers’ rights and contributed to widespread protests, particularly from farmers who opposed the now-repealed farm laws.
Finally, the fifth concern raised was rising economic inequality. Congress cited reports from international organisations that indicate a growing wealth gap in India, with a disproportionate share of wealth being concentrated in the hands of a few. The party alleged that government policies have favoured large corporates while neglecting the needs of small entrepreneurs, farmers, and the middle class.
Congress spokespersons called for a reorientation of economic policy that prioritises job creation, support for small businesses, and social welfare. They urged the government to focus on transparent governance, fiscal responsibility, and inclusive development.
In response, BJP leaders have previously defended these measures, saying they were necessary for long-term structural transformation and economic formalisation. The government maintains that despite global challenges, India remains one of the fastest-growing major economies.
As economic issues continue to dominate political discourse, the Congress party has said it will continue to raise these concerns in public forums and upcoming parliamentary sessions. With general elections drawing closer, economic performance and public sentiment around jobs, inflation, and inequality are likely to remain central themes in national political debates.
