Kharge said FMCG companies reported a decline in margins and have stated that this could lead to an increase in prices if raw material costs become unmanageable for companies.
Congress president Mallikarjun Kharge on Monday alleged that the BJP's "anti-people" policies are "corroding" India's economy and challenged Prime Minister Narendra Modi to speak about real issues facing common people in his future election rallies, instead of "spewing lies" against the Opposition.
Kharge said fake narratives cannot be a substitute for real welfare.
"Have a look at the economic turmoil you have created by looting ordinary citizens of their last paisa! Even the festive cheer could not lift the spirits of India's economy - reeling under low consumption, high inflation, widening inequality, dampened investment and wage stagnation," the Congress chief said in a post on X.
Even industry captains are forced to talk about ''missing middle class' syndrome, as the Modi government deals a "body blow" to the poor and middle class by imposing "back-breaking" price rise and wiping out their savings through mindless taxation, he alleged.
"5 undeniable facts -- Food Inflation is at 9.2 per cent. Vegetable inflation surged from 10.7 per cent in August to a 14-month high of 36 per cent in September 2024. It is a fact that the FMCG sector has seen demand sharply decline, with growth in sales dropping from 10.1 per cent to just 2.8 per cent in a year. Your own Finance Ministry's monthly report states this," he said.
Kharge said FMCG companies reported a decline in margins and have stated that this could lead to an increase in prices if raw material costs become unmanageable for companies.
The Congress chief claimed that household savings have plunged to a 50-year low.
"Consumption has severely dipped due to high food inflation. For instance, the growth in F&B sector, which used to be in double digits, is now down to 1.5-2 per cent. Analysts at Nomura India have noted that urban demand shall continue to lag due to lower salary increases, waning pent-up demand, high interest rates, and tight credit conditions," he said.
Kharge also pointed out that passenger vehicle sales dropped by 19 per cent in September, and most October sales are flat.
The Finance Ministry has noted that there has been 2.3 per cent contraction in automobile sales, he said, adding that a crucial indicator of rural economic health, two-wheeler sales, has yet to surpass 2018 numbers.
"Even SUV sales are at a 26-month low. Housing sales in India's top 8 cities declined by 5 per cent in the quarter ending September 2024," he said.
Kharge also claimed that real wages for labourers stagnated between 2014-2023, and in fact declined between 2019-2024, he said citing Labour Bureau's Wage Rate Index.
Between 2014-15 and 2021-22, inflation-adjusted wages of India's workforce have risen by less than 1 per cent (ILO), he said.
"Modi ji, it is crystal clear that you do not believe in hard data, since you have mastered the art of FAKERY! BJP's anti-people policies are corroding India's Economy!" Kharge alleged in his post.
"We challenge you to speak about the REAL issues facing common people in your future election rallies, instead of spewing lies against the Opposition!" he said. Asserting that India is in its "most precarious and difficult" economic situation in many years, the Congress on Wednesday said wage stagnation, inflation and inequality are undermining consumption growth in the country.
The Congress has been attacking the government over its handling of the economy and raising concerns over "increasing" unemployment and price rise.