New Delhi, 11 February 2025:
On Tuesday, during the Rajya Sabha budget discussion, Aam Aadmi Party MP Raghav Chadha launched a strong attack on the government’s policies and openly highlighted the issues faced by the middle class, railways, and Indian expatriates. He asserted that the government treats the middle class as a soulless structure—exploiting its very bones—to build a five‐billion‑dollar economy.
Neglect of the Middle Class, Debt Forgiveness for the Rich
In his speech, MP Chadha said, “The poor receive subsidies and schemes, the rich have their debts forgiven, but the middle class gets nothing. The government thinks the middle class has no dreams or aspirations. It is regarded as a hen that lays golden eggs, which is repeatedly squeezed.”
He explained that while the economy may be growing and demand is increasing, this demand comes solely from the middle class—whose pockets remain empty. Census data and surveys confirm that the middle class has its own dreams and aspirations and that their children harbor limitless ambitions. He even quipped, “In 1989, the movie ‘Honey, I Shrunk the Kids’ was released in America, and in 2025, India will see a film titled ‘Honey, I Shrunk India’s Middle Class.’”
MP Chadha further noted that reports indicate a decline in the spending capacity and consumption of the middle class. He stated, “There is no doubt that a taxable income of 12 lakh rupees results in zero tax. But this exemption is not that straightforward. If you earn even slightly above 12 lakh—for instance, 12.10 lakh rupees—you have to pay tax as per the designated slab.”
The Middle Class: The Hen That Lays Golden Eggs for the Government
MP Chadha highlighted that out of India’s 1.4‑billion population, only 6.68% benefit from these tax exemptions. While 80 million Indians file income tax returns, 49 million report zero income and only 31 million actually pay taxes. This statistic, he argued, shows that the true tax burden falls on the middle class.
He rejected the Finance Minister’s notion that such tax exemptions would boost consumption, adding, “Consumption will not increase until GST rates are reduced. GST is paid by everyone—not just by income taxpayers. When the common man pays tax on milk, vegetables, and medicines, his pocket grows lighter.”
MP Chadha then contrasted the government’s policies for different classes.
“The government offers subsidies and schemes for the poor and forgives the debts of the rich—but the middle class gets nothing. There are no subsidies, no tax relief, nor does any scheme benefit them. The middle class is like a hen that lays golden eggs, yet the government does not keep it happy.”
The Aspirations of the Middle Class Crushed Under the Burden of Taxes
He observed that the middle class is the largest taxpayer yet receives the least benefits. Salaries do not rise, savings remain minimal, and inflation continually increases. For instance, when food inflation exceeds 8%, salary increments are less than 3%.
Trapped in the Web of Inflation and Debt
MP Chadha reiterated that although the middle class is the largest contributor in taxes, it reaps the smallest rewards.
“The middle class is forced to pay tax on everything—books, stationery, medicines, sweets, clothes, housing; every hard-earned rupee is taxed. Their aspirations are crushed under the weight of these taxes. Income remains stagnant while expenses continuously rise. From children’s education to healthcare, the middle class is in a constant struggle.”
He further explained that many middle-class families become trapped in long-term debt.
“Even after a lifetime of work, the middle class has to sink into 20–25 years of debt to buy a 2BHK house. Salaries come on the 7th, yet landlords demand rent on the 1st. Loans are taken for higher education, and in emergencies, even gold has to be mortgaged. This situation is only getting worse.”
He cited the slow growth of FMCG companies like Nestlé India as an example, arguing that the middle class is no longer spending as it once did and said , “The demand for affordable goods has fallen, and people are now reluctant to spend.”
Indian Railways: Premium Fares Extracted, Zero Facilities Provided
Turning his attention to the railways, MP Chadha accused the government of neglect. He stated that while facilities in the railways are deteriorating, fares are rising. Expensive trains such as the Vande Bharat Express are beyond the reach of the common man, and subsidies for the elderly have been discontinued.
“The public is charged premium fares, yet there is no corresponding improvement in facilities. Projects like Vande Bharat and bullet trains are designed only for the rich," said Raghav Chadha
He went on to note that while train speeds are increasing worldwide, the pace of Indian Railways is declining—Vande Bharat’s speed has been reduced, and fares have risen dramatically (from ₹0.32 per kilometer in 2013–14 to ₹0.66 in 2021–22, a 107% increase). Consequently, these expensive trains often run empty because they are no longer affordable for the average citizen. The government’s earlier claim that “even someone in flip-flops can fly” now seems out of touch with reality, as train travel itself has become inaccessible for the common man.
MP Chadha also commented on the plight of railway passengers, noting that while the common man is forced to use the railways out of necessity, the Rail Minister appears more captivated by social media reels than by the actual issues of the passengers. He added that compartments once considered “luxurious” (such as 3AC and 2AC) are now in worse condition than general compartments. Despite having booked tickets, passengers are not guaranteed seats; overcrowding is so severe that people are packed together like sacks of potatoes. Even finding space in the restroom has become a matter of luck. He described the unsanitary conditions on platforms, with dirty blankets, foul odors, stagnant water, and insects in the food leading to a 500% increase in cleanliness complaints over the past two years.
Discussing ticket booking, MP Chadha noted that it has become increasingly difficult, forcing people to rely on third-party apps that charge hefty commissions. Cancellation fees are exorbitant, platform tickets and station food have become expensive, and fake water is being sold in place of genuine Bisleri, with substandard ingredients used in meals.
He questioned the government by asking how many of India’s 1.4 billion people can afford expensive trains like the bullet train and Vande Bharat. “If 800 million Indians are to receive free ration, how can they possibly pay for tickets costing between ₹2,000 and ₹3,000, especially when their monthly earnings are only around ₹8,000–10,000?”
Reinstating Subsidies for the Elderly in Railways
MP Chadha stressed that the country needs thousands of affordable, regular trains rather than a few high-speed bullet trains. In an era marked by rising inflation and unemployment, people demand economical travel options rather than costly high-speed services. In 2020, the railways discontinued travel subsidies for the elderly, affecting 150 million senior citizens.
“Have our railways become so ruthless that they squeeze money from the frail bones of the elderly? After retirement, the elderly dream of pilgrimage, yet the government has stripped them of even that facility.”
He urged the government to reverse this injustice and reinstate the subsidy for the elderly so that they may travel with dignity in their later years.
MP Chadha also raised concerns over rail accidents. He claimed that the Rail Minister shows little concern for the safety of the railways or the public. While the Rail Minister touts the “Kavach system” (a safety mechanism), rail accidents continue to occur almost weekly. Once renowned for safe travel, Indian Railways now offers no guarantee of reaching one’s destination safely. In the past five years, over 200 rail accidents have resulted in 351 deaths and more than 1,000 injuries. For example, the Balasore rail accident in June 2023 claimed 293 lives and injured over 1,100 people, yet no concrete action has been taken in the name of investigation and accountability.
He further criticized the misuse of tax revenues collected in the name of rail safety, alleging that these funds are used not to enhance safety but to purchase luxury sofas and foot massagers for high-ranking officials.
Why Is the Government Silent on the Plight of Indian Expatriates?
Referring to the incident in which 104 Indians were deported from the United States, MP Chadha said, “Indians were brought on airplanes shackled and chained. This is against humanity. The government should have strongly protested this, but our Ministry of External Affairs failed to take decisive action.”
He added that when Colombia’s President Gustavo heard that the US military was arriving with an aircraft full of expatriates, he refused to allow the plane to land. Instead, he boarded the aircraft himself and assured that a ‘dignified life’ would be provided in Colombia.
He questioned India’s response by asking: Why did the Ministry of External Affairs not summon the American ambassador to express its outrage? Why didn’t India send an aircraft to repatriate its citizens with dignity? And why does such treatment not occur for citizens of countries like Sweden, Denmark, Norway, and the United Kingdom?
Trump’s Policies Endanger Millions of Jobs
MP Chadha then referred to the policies of the Trump administration, stating that H‑1B visa restrictions and tariffs are negatively impacting Indian professionals and industries. He claimed that American tariffs are severely damaging Indian IT exports, pharmaceuticals, and the automobile sector—putting millions of jobs at risk.
“The H‑1B visa restrictions will affect Indians the most. In 2023, 72% of the total 386,000 H‑1B applications were from Indians, which could lead to massive job losses—potentially risking the jobs of around 0.5 million Indians in the US. Additionally, increased H‑1B visa costs mean that Indian IT companies may have to hire local staff at higher salaries.”
He also stated that Trump’s policies will not spare the textile sector. With tariffs of 15–25% imposed on Indian garment exports, competitiveness will decline, and exports worth $8.4 billion in 2023 could shrink. In the pharmaceutical sector, a 25% tariff could disrupt the supply of generic drugs to America—jeopardizing 150,000 jobs in Gujarat, Andhra Pradesh, and Maharashtra.
Furthermore, he warned that a 25% tariff on the automobile sector could result in a $14‑billion trade loss and affect nearly 300,000 jobs. The situation for expatriates will worsen, as stricter measures on illegal immigration and delays in green card processing may cause many Indians in the US to lose their jobs. This, in turn, will increase unemployment in India and create difficulties for returning Indians in reintegrating into the economy.
He noted that a decline in foreign currency reserves could weaken the Indian rupee against the dollar. A drop in IT companies’ revenues might result in a reduction of India’s corporate tax collection by as much as $2,500 to $3,000 million.
Moreover, such economic challenges will add political pressure. The US may compel India to purchase more defense equipment and could also pressure India to halt defense agreements with Russia. In addition, the US might withdraw the $200 million it provides for health and education.
Impact of Indirect Taxes and the Burden of GST
MP Chadha highlighted that out of India’s 1.4 billion people, only 6.68% benefit from these tax exemptions. While 80 million Indians file income tax returns, 49 million report zero income, and only 31 million pay taxes—demonstrating that the real tax burden is borne by the middle class.
Rising Inflation Due to the Falling Value of the Rupee
MP Chadha also expressed concern over the depreciating rupee. Citing an SBI report, he stated that a 5% decline in the rupee leads to a 0.50% rise in inflation. He added,
“In May 2014, the rupee was valued at 58.80 against the dollar; by February 2025, it has fallen to 86.70. The rupee’s depreciation has made petrol and diesel more expensive, driving up the cost of everything.”
He noted that in an effort to stabilize the rupee, the RBI sold $77 billion of its reserves—reducing them from $701 billion in October 2024 to $624 billion in January 2025.
He explained that since India imports 85% of its crude oil, the rupee’s weakness directly impacts fuel prices and, consequently, the common man’s pocket. The depreciating rupee is also causing food inflation, energy inflation, healthcare inflation, education inflation, and electronics inflation—problems that hit the middle class directly.
Speaking of electronics inflation, MP Chadha said that because India imports most electronics and their components, which are priced in US dollars, the cost of smartphones, laptops, and other gadgets continues to rise with the rupee’s depreciation. Even domestically manufactured electronics are becoming more expensive due to the increased cost of imported components. Similarly, the automobile, consumer durable, and aviation sectors are facing a 5–10% price increase because of expenses denominated in dollars.
He argued that while a weaker rupee should theoretically boost exports, Indian exports have actually declined. China has devalued its yuan to promote exports, and India’s trade deficit has risen to $202.42 billion. Foreign investors are increasingly adopting a “sell India, buy China” strategy, with $2 billion in investments withdrawn from India in November 2024.
He recalled that in 2013 a prominent BJP leader and MP had said, “When the UPA came to power, the value of the rupee against the dollar was equivalent to Rahul Gandhi’s age. Today it is equivalent to Sonia Gandhi’s age, and very soon it will match Manmohan Singh’s age.”
MP Chadha concluded by noting that while some initially expressed concern over the falling rupee, the government now seems indifferent. “I want to ask them: Why is no one paying attention anymore? Why is there no comment when the rupee falls—even though it falls every day?”