The Congress on Saturday sought an explanation from Prime Minister Narendra Modi on the US’s decision to end India’s designation as a beneficiary nation under a key preferential trade programme, alleging that this would adversely impact exports.
Congress communications chief Randeep Surjewala said in a statement that the US government’s move had “grave trade and economic implications for India”.
He said that it would directly affect Indian exports worth $54.4 billion (Rs 3.88 lakh crore).
Surjewala pointed out that India got the Special Trade Status on November 24, 1975, when Indira Gandhi was Prime Minister, and that it was being withdrawn after 44 years.
“The Prime Minister should make a comprehensive statement on the issue,” the Congress spokesperson said.
He pointed out that the US was India’s largest export partner and that a decline in exports would deepen the job crisis.
“Unemployment is already at a 45-year high of 6.1 per cent…. GDP growth has slumped to a five-year low of 5.8 per cent. At this juncture, withdrawal of the Special Trade Status by the US is a double whammy,” Surjewala said in the statement.
He added: “On one hand, the Indian government has decided to yield to US pressure to stop purchasing crude oil of 23.5 million tonnes annually from Iran on favourable terms; and on the other hand, the ‘Special Trade Status’ for India has been withdrawn by the country with whom our export volume is the largest. The most serious implication would be for sectors like agriculture, auto parts and pharmaceuticals.”
Surjewala accused the government of suppressing National Sample Survey Office (NSSO) data.
“Job crisis cannot be a subject matter of a slanging match between two political parties. India’s young need jobs. Responsibility lies on the government to address the job crisis as its first priority. We sincerely hope that a Prime Minister, who has been elected with such a huge mandate, is listening to the cry for justice of the youth,” the Congress leader added.
The Congress also raised the increase in the price of LPG cylinders after the elections, claiming that the government was not sympathetic to the poor and the middle class.