Unemployment, rising inequality: Congress flags economic challenges faced by India in its 'Real State of the Economy 2025' report

With the government gearing up to present its Union Budget on February 1 and Delhi heading toward polls on February 5, the Congress party has released 'The Real State of the Economy 2025' report highlighting the economic challenges facing the country. Rising unemployment, increasing inequality between the rich and the poor, and stagnant wage income are the top concerns, according to senior Congress leader P. Chidambaram.

As per the report released by the former finance minister, India's GDP which is expected to be 6.4% for 2024-2025, is a sharp decline from sustained GDP growth of at least 8% that is expected based on its historic demographic dividend. Chidambaram criticized the government's way of handling the economy, saying, "The economy is in a slowdown. That cannot be denied at all. The government can deny all it wants but the economy has fallen by 2% compared to its previous years."

Concerns about unemployment, a persistent issue for the BJP government and a key focus for Delhi Election campaigns, was the biggest highlight of the report. The Congress described the current situation as one of massive 'job destruction' and the country experiencing a ‘job-loss’ growth. The report showed that one out of every two youngsters was unemployed in 2022-23 (45.4%) and women are the biggest victims of job loss. 

"There are no jobs.  Among graduates, unemployment is close to 30%. The government is filling jobs already vacant. They are not creating jobs", Chidambaram said. 

Inflation was another key challenge raised in the report. The stagnation in wages of daily workers and the rising inequality between the rich and the poor were noted by the opposition. "Inflation is rising. Look at food inflation, school inflation, healthcare inflation. All are in double digits. While inflation is rising, wages are at stagnation," said Chidambaram.

"Huge inequality. 50% of India’s population is living on 100 to 150 rupees a day. The gap between the rich and poor is increasing," he further added.

The party further criticised the government for reducing public expenditure on critical sectors like education and rural development based on the past 6 to 7 years of budget.

Key highlights from 'The Real State of the Economy 2025' report

One out of two youth was unemployed in 2022-23 (45.4%)

Graduates face 29.1% unemployment rate

BJP decade average growth – 6% (vs 7.6% under UPA)

India’s per capita income has fallen below Bangladesh

Top 1% control over 40% of wealth

Household savings now at a 47-year low

Imports from China have surged 83% since 2019-20

India ranks 105th out of 127 countries on Global Hunger Index in 2024

More than 1 lakh farmer suicides between 2014-22

In 2024, cost of home-cooked vegetarian meal rose by 10%