Rahul Gandhi criticized the Narendra Modi-led BJP government for prioritizing “crony capitalism” over fair business practices, claiming that this has led to a weakened manufacturing sector, a depreciating currency, record-high trade deficits, rising interest rates, declining consumption, and soaring inflation.
In a post on X, the Leader of the Opposition in the Lok Sabha shared a media report highlighting that the trade deficit and imports had reached record highs. He questioned the consequences of a government that favors “crony businesses” over fair play businesses, stating: “What happens when a government prioritizes crony businesses over play-fair businesses? Result: Weakened manufacturing sector, depreciating currency, record high trade deficits, high interest rates, falling consumption and soaring inflation.”
Gandhi and the Congress party have consistently accused the government of promoting crony capitalism. The opposition has also called for a parliamentary debate on issues involving industrialist Gautam Adani, which has led to significant disruptions in the current winter session. To protest, opposition MPs carried dark blue “holes” with the caricatures of Prime Minister Modi and Adani and the phrase “Modi-Adani Bhai-Bhai.”
Regarding the trade deficit, India’s exports in November contracted by 4.85% year-on-year to $32.11 billion, following a double-digit growth in October. The trade deficit widened to an all-time high of $37.84 billion, largely due to a surge in gold imports. According to data from the commerce ministry, imports increased by 27% year-on-year to a record $69.95 billion, driven by high shipments of vegetable oil, fertilizer, and silver. Gold imports surged to a record $14.8 billion in November, up from $3.5 billion a year earlier.
From April-November 2024, India’s exports grew by 2.17% to $284.31 billion, while imports rose by 8.35% to $486.73 billion. Consequently, the trade deficit for this period widened to $202.42 billion, compared to $170.98 billion in the same period of 2023.