Dynamite News Unorganised sector contracted 0.2 pc since FY16, claims Jairam Ramesh citing India Ratings report
"Unorganised sector contributes 44+% to India's Gross Value Added (GVA). The unorganised sector grew at 7.4% Compound Annual Growth Rate (CAGR) between FY11 and FY16, but has suffered an average yearly contraction of 0.2% since then," the senior Congress leader said. Read further on Dynamite News:
New Delhi: Congress General Secretary Jairam Ramesh on Wednesday claimed that as per a new report by credit ratings firm India Ratings, the Unorganised sector which contributes more than 44 per cent to India's Gross Value Added and grew at 7.4 per cent Compound Annual Growth Rate (CAGR) between Financial Year 11 and Financial Year 16 suffered an average yearly contraction of 0.2 per cent since then.
"Unorganised sector contributes 44+% to India's Gross Value Added (GVA). The unorganised sector grew at 7.4% Compound Annual Growth Rate (CAGR) between FY11 and FY16, but has suffered an average yearly contraction of 0.2% since then," the senior Congress leader said.
By FY23, GVA by unincorporated businesses was 1.6 per cent below FY16 levels, the Congress General Secretary said alleging that this recession in the unorganised sector cost India 4.3 per cent of its GDP or Rs 1.3 lakh crore.
"Sixty three lakh informal enterprises shut down due to these three shocks, leading to the loss of 1.6 crore jobs. At a time when a record number of youth are entering the labour markets, the Modi Government was destroying jobs," the Congress leader said.
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Slamming Prime Minister Narendra Modi-led government, Ramesh said, "For all the hype and bluster of Make in India, manufacturing jobs reduced from 3.6 crore in FY16 to 3.06 crore in FY23.
Manufacturing is India's ticket to solving unemployment and reaching a sustainable middle-income status. The non-biological PM oversaw the destruction of India's manufacturing."
The Congress leader further said that the "non-biological PM's" surprise announcement of demonetisation on November 8, 2016, which virtually halted all economic activity, the "botched roll-out" of the GST in July 2017, with a convoluted tax structure, high compliance burden, and punitive enforcement and the "non-biological PM's" decision to impose a nationwide COVID-19 lockdown on March 24, 2020 without prior notice, adequate preparation, or an economic program to protect the informal sector has led to a "systematic bludgeoning" of India's MSMEs and informal businesses causing an economic catastrophe.
Jairam Ramesh said that the Congress has repeatedly warned the "non-biological PM" of these consequences. He mentioned that former Prime Minister Manmohan Singh took to Parliament to decry demonetisation as "organised loot and legalised plunder" and Rahul Gandhi (now Leader of Opposition) has repeatedly drawn attention to the GST's devastation of job-creating MSMEs, pointing out that it was "neither a Good nor a Simple Tax".
Jairam Ramesh said that the Congress has suggested some measures in its manifesto to revitalise the informal sector, like establish GST 2.0, with a single, moderate rate and relief for small taxpayers like MSMEs; lessen the burden of tax on MSMEs owned by individuals and partnership firms; and ensure a level-playing field and oppose the rampant monopolisation and oligopolisation that has crowded out MSMEs.
"The non-biological PM's cronyism and arbitrary policymaking has cost India Rs 1.3 lakh crores in GDP and 1.6 crore jobs," Ramesh said. (ANI)