India's Economic Challenges and Potential for Instability

India's Economic Challenges and Potential for Instability.webp


New Delhi, February 10 On Tuesday, opposition parties accused the government of failing to address issues such as unemployment and inflation in the Union Budget, with Trinamool Congress' Sukhendu Sekhar Roy emphasizing that growing inequality may lead to a "social upheaval," similar to what was witnessed in neighboring countries.

Participating in the debate on the Budget in the Rajya Sabha, MPs raised concerns over the India-US trade deal and pending dues to states.

"We have never witnessed such skyrocketing inequality between the rich, the super-rich, the upper-middle class, the middle class, and the poor... If the situation is not brought under control, I am afraid the day is not far when the country would be plunged into social upheaval, the way some of our neighboring countries have recently seen," Roy said.

He also questioned the interim trade deal between India and the US, saying, "What is the cost of agreeing to this proposal? The US says the Indian market would be open for dairy...".

"The claims of reducing tariffs have a different story; until last year, tariffs were around 3.5 per cent," he said.

"We have left our time-tested friend Russia, and joined hands with a country which stood by rogue Pakistan... It is against our national interest. Are we a banana republic?" he wondered.

"The government must clarify the India-US trade deal," he added.

RJD MP Manoj Jha questioned the economic growth story and said that while the economy is growing, the issue of unemployment remains unaddressed.

"The economy is growing, India has become a destination for investment, while the youth remain unemployed, real income is stagnant, and since the colonial period, income inequality is at its highest," Jha said.

He said the Budget is not just a financial document, but a "moral document," and said, "Unemployment continues to be the biggest challenge. If it continues like this, the demographic dividend would become a demographic liability."

He also demanded a "special status" for Bihar.

Independent MP Ajit Kumar Bhuyan said he is the "sole voice of opposition from the north east," and added that the Budget is "anti-women, anti-youth, anti-farmer, and anti-worker."

"The Border and hill districts across the country have been facing high levels of unemployment, but the budget gives no road map... I have my own doubts, the youth of that sensitive area has been lured by a hostile neighboring country against the interest of the nation," he alleged.

He alleged that the Budget "overlooked" poll-bound Assam, and also said that the Centre owes money to the state.

"The Union Budget has triggered disappointment in Assam," he said.

Jebi Mather of the Congress party also raised concerns over the India-US trade deal.

"At midnight hour on February 2, US President Donald Trump announced a US-India trade deal... It was dictated to India," she said.

Recalling first Prime Minister Jawaharlal Nehru's "tryst with destiny", she said this deal is a "twist with destiny".

"The 56-inch surrendered to President Trump along with 1.4 billion people of India.... I ask the Prime Minister, the Finance Minister, is it really wonderful to lower the trade barrier for the US? To surrender our freedom to decide whom to buy oil from?" she asked.

"Will it be really wonderful for our farmers? Isn't this US monitoring mechanism kick-starting precedence for foreign oversight of India's policy decisions? Are we a rogue nation to be monitored? Isn't this effectively surrender?" she said.

She also alleged that the Budget ignored poll-bound Kerala, and expressed apprehensions over the announcement of setting up a rare earth corridor.
 
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assam bihar income inequality india india-us trade deal inflation kerala rajya sabha unemployment union budget
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