RAHUL: ECONOMY STARING AT MODI-MADE DISASTER

Congress Vice-President Rahul Gandhi on Thursday said the Narendra Modi government’s badly conceptualised and moth-eaten goods and services tax (GST) had “unleashed a tsunami of tax terrorism”.

The Indian economy was “staring at a disaster” because of the twin blows of demonetisation and the GST, he said, adding it was “purely a manmade disaster, or, rather, in the PM’s terminology ‘an MMD’— a Modi-made disaster”.

Speaking at an event organised by the PHD Chamber of Commerce and Industry (PHDCCI), the Congress leader sought to reach out to the small and medium enterprises (SME) sector, saying it was the “backbone” of the economy and could be the engine to create jobs, but was currently “screaming in pain”.

Over the past few months, including in his speeches during his US tour, Gandhi has frequently spoken of the potential of the SME sector in job creation for a country like India, how policies are framed for big corporate groups, and the challenges SME and unorganised sectors have faced in recent months. He said a minister for the SME sector would be a fundamental pillar in any future Congress government.

In a well received speech, he criticised the handling of the economy by Prime Minister Modi and Finance Minister Arun Jaitley. He said while businesses had drowned, the FM had “the nerve to go on TV every other day and say things are just fine” and would become better after 2019.

“The way this regime is working—or not working—has led to a double-tap killing of the Indian economy. Commandos ina host age situation fire what is called a‘ double tap ’— two quick shots fired in the chest to ensure that their devil’s target is down, is dead,” he said.

Gandhi said the government had fired the “double tap” of demonetisation and the GST into the heart of the economy. “First note bandi (demonetisation), bang, and then the GST, bang, crippled our economy.”

Gandhi, who is expected to become the Congress president next month, said the government could not provide jobs but was now riling up communities against each other or busy debating whether the Taj Mahal was built by Indians.

Earlier, welcoming the Congress vice-president, outgoing PHDCCI President Gopal Jiwarajka said an industry chamber was a political, and aligned not to any political party but to policies. He said the political weather of the country was changing and it was good to see that a strong opposition had emerged.

The Congress vice-president said a little over three years back the PM presented to the nation “the Indian vision”. “Today, it is fair to say that vision lies shattered,” he said. He said “arrogance” and a “condescending tone” had become the bedrock of the government. He said business thrived on trust and a safe predictable environment. “The truth is, the trust in this government is dead. For some reason the PM and his government are absolutely convinced that every single person in the country is a thief,” he said to applause from the gathering.

Gandhi said the government did not believe in its people and the people had “slowly withdrawn their trust” from the government. In a fortnight, he said, the country would celebrate the ‘ barsi’, or death anniversary, of the note ban. In a jibe directed at the PM, Gandhi said this government had shown it had a “very big chest, but a very small heart”.

He said the economy could be revived if the SME sector was supported. He said it was because of the SMEs that China generated 50,000 jobs every single day; in India, 450 jobs were created daily. Gandhi said the sector needed a “new deal”, particularly stronger linkages with the banking system. He said the sector had a 14 per cent share of India’s economic output and a 80 per cent share of the country’s non-agricultural output but all SMEs combined get less banking credit than the 10 big corporate groups. He said ‘stand-up India’ was welcome, but not ‘shut up India’. Gandhi criticised the “absolute concentration of power” in the PMO, saying even senior cabinet ministers like Sushma Swaraj didn’t have a voice.

“THE TRUTH IS, THE TRUST IN THIS GOVT IS DEAD. FOR SOME REASON, THE PM AND HIS GOVT ARE ABSOLUTELY CONVINCED THAT EVERY SINGLE PERSON IN THE COUNTRY IS A THIEF” Rahul Gandhi Congress vice-president