The Aryavarth Express
Agency (New Delhi): With India’s economy still reeling from the impact of the COVID-19 pandemic, with GDP growth slowing to 4.4% in Q3 of 2022-23 (NSO) and inflation soaring to a 30-month high of 7.8% in April 2023 (RBI), the Congress party today unveiled its vision for economic revival and inclusive growth. Terming it the “Nav Sankalp” (New Resolve) agenda, the party’s election manifesto promises to create 12 crore new jobs in the next 5 years and boost GDP growth to 8-9% per annum.
To achieve this ambitious target, Congress pledges to launch a massive public investment program in infrastructure, green energy and social sectors, with an allocation of Rs. 10 lakh crore per year. It also promises to revive the MSME sector, which accounts for 30% of GDP and 11 crore jobs (MSME Ministry, 2022), through a new credit guarantee scheme, tax breaks and regulatory reforms.
Acknowledging the failure of the current Goods and Services Tax (GST) regime, with monthly collections averaging just Rs. 1.2 lakh crore against the target of Rs. 1.5 lakh crore (Finance Ministry, 2022), Congress promises to replace it with GST 2.0. The new system will have a single moderate rate of 10-12% for most goods and services, with a low rate of 5% for essential items and a high rate of 18-28% for luxury items.
To address the rising income and wealth inequality, with the top 10% now owning 77% of the national wealth (Oxfam, 2022), the manifesto pledges to introduce a wealth tax on net assets above Rs. 5 crore and an inheritance tax on estates above Rs. 50 crore. It also promises to raise the minimum income tax exemption limit to Rs. 5 lakh per year and provide tax relief for the middle class.
On the agriculture front, even as farm incomes remain stagnant and food inflation soars to 8.3% (MOSPI, 2023), Congress vows to increase public investment in irrigation, storage and marketing infrastructure to Rs. 1 lakh crore per year. It also promises to expand the PM-KISAN cash transfer scheme to cover all farmers, with an increased amount of Rs. 12,000 per year.
To boost exports, which have remained sluggish at around $400 billion per year (Commerce Ministry, 2022), the party pledges to set up a new Export Promotion Council and provide tax incentives and cheap credit to exporters. It also promises to review all existing free trade agreements and negotiate new ones with the US, EU and other major markets.
In the crucial education and health sectors, which have seen drastic budget cuts and privatization under the BJP government, Congress promises to raise public spending to 6% and 3% of GDP respectively by 2024. It pledges to establish new public universities, medical colleges and hospitals in every district and provide free education and healthcare to all citizens.
As India faces its worst economic crisis in decades, with over 12 crore people losing their jobs and livelihoods since 2020 (CMIE) and poverty rising to a 45-year high (IMF, 2022), the Congress manifesto offers a bold and ambitious agenda for recovery and redistribution. However, financing these promises will require a major overhaul of the tax system, plugging of loopholes and leakages, and a crackdown on corruption and crony capitalism.
