Will end drain of wealth from Indian families to crony corporates: Congress

New Delhi, May 9: The Congress on Thursday accused the Modi government of aiding “drain of wealth” from ordinary Indians to crony corporates, and said it will end this practice if it comes to power at the Centre.

The Congress attack came a day after Prime Minister Narendra Modi said that Rahul Gandhi had stopped “abusing” Adani and Ambani and whether his party received money from them in return.

“On June 4, as the Congress-led government takes power, we will rapidly accelerate economic growth while ensuring that ordinary Indian families are the biggest beneficiaries. We will end the ‘drain of wealth’ from Indian families to crony corporates,” Congress general secretary Jairam Ramesh said in a statement.

“The ‘Hum Do Hamare Do’ effect: Net household savings fell by 9 lakh crores in the last three years. Real household savings are at their lowest since 2014. PM Modi has overseen a ‘drain of wealth’ – from Bharat ke Parivar to Modi ka Parivar,” Ramesh also said in a post on X, while sharing his statement.

The Congress leader, in his statement, said 150 years ago, Dadabhai Naoroji’s “Drain Theory” explained how the wealth of India’s people was being taken away and sent to England.

“Since 2014, we have seen a similar ‘drain of wealth’ from Bharat ke Parivaar (India’s families) to Modi ka Parivaar (Modi’s family). This is the intentional effect of the prime minister’s ‘Hum Do Humaare Do’ policy of favouring his cronies, he said.

“With each passing day of Modi’s Anyay Kaal, this ‘Drain of Wealth’ breaks a shameful new record. The National Accounts Statistics released on 7 May, 2024 show that India’s net household savings have decreased by Rs. 9 lakh crore in three years,” he claimed.

Ramesh alleged that India’s households are depleting their savings and falling into debt due to the economic mismanagement, incompetence, and anti-people policies of the Modi government”.

He noted that loans to households have increased from 7 lakh crore to 14 lakh crore in last three years.

Citing figures to highlight there is a crisis for Indian households and consumers, he said in September 2023, the RBI bulletin showed India’s net financial savings at just 5.1 per cent of the GDP, which was the lowest in 47 years.

“In a real sense, the BJP government is responsible for ripping away mangalsutras, as its economic failures have pushed gold loans to a record high. Outstanding gold loans have crossed Rs. 1 lakh crore for the first time in India’s history, as per RBI data,” the Congress leader alleged.

“Any growth that has happened since 2014, has been only for the crony industrialist friends of the Prime Minister: Today, 21 billionaires have more wealth than the poorest 70 crore Indians combined,” he alleged.

“Today, the richest 1% have 40% of India’s wealth – this is higher than it was during the British colonial times, and is among the worst in the world. This is the reality of Modi’s Anyay Kaal. While Hum Do, Humaare Do have prospered, ordinary Indian families have suffered under failed economic policies like demonetisation, badly-designed GST, and unplanned lockdowns,” Ramesh also claimed.

Congress leader P Chidambaram, meanwhile, said the party’s manifesto on economy has promised to support the private sector and every kind of enterprise—large, medium, small and micro.

“Regulatory oversight will be based on clearly enunciated laws and rules that will be applied fairly and without discrimination. We will ensure a level playing field for all. We are opposed to monopolies and oligopolies and crony capitalism.

“We will ensure that no company or person arrogates to itself or himself the financial or material resources or the business opportunities or the concessions that ought to be available to every entrepreneur,” he said in a post.