DARK clouds of deepening economic distress are looming over the country’s people with dire predictions for price rise adding to the twin crises of raging unemployment and stagnating wages that have been haunting the country for several years now. The US-Israel war on Iran and its cascading effects on the world economy – higher fuel and fertliser prices, supply chain disruptions and consequent spikes in food prices – are already casting a shadow on India. Obviously, the Modi government’s complete identification with US-Israel axis and abetting the first salvos of the war through the PM’s Israel visit on the immediate eve of the attack on Iran points to their culpability in this crisis. The government had earlier submitted to Trump’s arm twisting over purchase 0f much cheaper Russian oil and gas. Therefore, the current economic distress of the common man has been aggravated by the Modi Government’s subordinate foreign policy and the consequent acquiescence to US-Israel aggression.
The Modi government has reduced its extortionate excise duty on petroleum products by a mere Rs. 10, which is mostly for the benefit of the oil companies. Commercial LPG cylinder prices were jacked up by Rs.993 this month while domestic LPG cylinder price was hiked by Rs.60 in March. Since there is unchecked hoarding and black marketeering, domestic cylinders are illegally selling for as much as Rs.3000-4000. Industry analysts report that input prices increased at the fastest pace in 44 months, while output charges rose at the quickest rate in six months. The Modi government had avoided diverse price hikes till the Assembly elections. Now that the results are out, inflation is likely to start shooting up. With metrologists predicting an El Nino later this year, the chances of weather related disruptions to food production are high. Modi and his band of ministers are not blithely unaware, but simply unconcerned of these looming threats.
Inflation has become an even more lethal destroyer of family budgets because of the continuing high degree of joblessness in the country. According to the Periodic Labour Force Survey monthly bulletin, in March this year, unemployment rate was 5.1 per cent – the same level as one year ago. In urban areas it was 6.8 percent. It must be remembered that the ‘current weekly status’ type of employment is defined as work done for one hour in the preceding one week. Obviously, such a ludicrous definition is designed to exclude large numbers from the army of unemployed that exists today. A recent report on State of Work in India by the Azim Premji University noted the rather ominous data that among graduates, unemployment is 40 per cent for those in the 15-25 years age group and 20 per cent in 25-29 years age group. The report has practically sounded the death knell for the much tomtommed demographic dividend of a young workforce – it says that the peak will be reached in 2030 after which the working age proportion will start declining. The Modi government is squarely – and criminally – responsible for the frittering away of this advantage due to its callous negligence towards employment creation.
Meanwhile the even more foundational aspect of economic wellbeing – earnings or incomes – continues to languish, yet again shown by the PLFS Annual Report for 2025. Less than a quarter of the workforce (23.6 per cent to be precise) are employed in jobs where regular wage or salary is paid. The overwhelming majority of people (56.2 per cent) are ‘self-employed’ which includes agricultural labourers and lakhs working as sellers of labour in service sector among others. And slightly more than 20 per cent are employed as casual labour. What do these three categories of workers ear on an average? According to one estimate, 64 per cent of working Indians earn less than minimum wages. What is striking is that during 2022-2025, regular wage and salary earners saw 1.2 per cent annual increase in real wages, while for casual labour the increase was just 0.5 per cent, and for self-employed 1 per cent. Low levels of income and practically no increase is a burden being borne by Indian working people even as the corporate world is reporting super profits, and increasing number of billionaires, thanks to the largesse provided by the Modi government through tax cuts, incentives and debt write offs.
Perhaps the most tragic and infuriating aspect of this crisis is that the present government is indifferent to the misery and pain of the people. Its greed for power and its dedication to serve the wealthy is so over-powering that it is destroying the country’s Constitution, the rule of law and crushing democratic rights, to the applause of the big corporate echelons, both domestic and foreign. In the process it is sowing seeds of hatred and division that are threatening to rip apart the social fabric of the country. Only the united strength of the people can stop this destruction of the past, present and future of India.
(May 06, 2026)
