The Congress party on Tuesday slammed the Modi government for its failure to address the declining value of the Rupee, which recently fell to an all-time low of Rs.86.70 against the US Dollar. Congress president Mallikarjun Kharge held Prime Minister Narendra Modi responsible for the economic turmoil, citing his “rank incompetence” as the reason for widespread public suffering.
Highlighting the recent economic challenges, Kharge pointed out on X (formerly Twitter) that the nation’s forex reserves have dropped to a 10-month low, while the withdrawal of foreign investments from Indian equities has deepened market woes. “Investors lost Rs.24.69 lakh crore in just four days due to the market slump, foreign fund outflows, and the Rupee’s steep decline,” he stated.
The Rupee experienced a significant single-day drop of 66 paise on Monday, marking its most considerable fall since February 6, 2023. This depreciation is attributed to India’s ballooning trade deficit and high import costs, particularly of crude oil, which have increased production expenses and exacerbated inflationary pressures.
Kharge criticized the government’s economic policies, stating, “High inflation is draining every single paisa from the people’s pockets, making their lives miserable.” He argued that the trade deficit and poor economic management have adversely impacted India’s balance of payments, further weakening the Rupee.
The BJP has yet to respond to Kharge’s remarks.
Interestingly, government data released on Monday showed a decline in retail inflation, which stood at 5.22% in December—a four-month low. The Consumer Price Index (CPI) inflation also saw a significant drop from a 14-month peak of 6.21% in October to 5.48% in November. Despite this, Kharge emphasized that these figures fail to reflect the on-ground reality of economic hardship faced by the middle and lower-income groups.
The Congress party’s critique comes amid growing concerns about India’s economic stability and its impact on everyday citizens.
