Sharing a video of the interaction on social media on Wednesday, Gandhi said small traders, MSMEs and the manufacturing sector had been systematically weakened as the government “gave free rein” to monopolies. “The government has given free rein to monopolies, and shackled small and medium traders with the chains of bureaucracy and flawed policies like incorrect GST. This is not just a policy failure – it is a direct assault on production, employment and India’s future,” Gandhi wrote on X.

During the meeting, trader representatives raised concerns over the implementation of the goods and services tax (GST), which they described as having turned into a burden rather than a reform. They referred to the tax regime as a “tool of oppression” for small and medium enterprises, citing compliance complexities and uneven enforcement.

Another major issue flagged was the inverted duty structure, which the representatives termed a “sham reform”.

In a press release, Congress stated that the structure distorted market realities by increasing input costs while providing limited relief to consumers.

“By increasing GST on raw materials and reducing GST on finished products, the government creates the illusion of consumer relief. The reality is that prices for consumers remain roughly the same, while small and medium producers’ costs rise, profits fall, and they are gradually forced out of the market. This is not a reform, but a policy to harm small producers and benefit big players,” the party said.

The trader delegations also questioned the government’s ‘Atmanirbhar Bharat’ (self-reliant India) campaign, calling it a “political gimmick”. They argued that instead of strengthening domestic manufacturing, current policies had increased India’s dependence on imports, particularly from China.

Referring to traditional trading communities, the Congress said they played a crucial role in production, employment generation and connecting producers with consumers, but alleged that government policies had failed to safeguard their interests. “Aggarwal society produces, provides employment and acts as a bridge between producers and consumers. Despite this, the Modi government’s policies have neither respect nor security for this society – only neglect and exploitation,” the party said.

According to the Congress, several representatives acknowledged that they had earlier been sceptical of Rahul Gandhi’s “warnings” about economic concentration and policy direction. However, they said the impact of recent years had validated those concerns.

“The representatives of the trader community bluntly said that they are completely disappointed with this government and fear that if these policies continue, the country’s economy will suffer catastrophically. He pledged to openly stand with Rahul Gandhi’s struggle and vision for a democratic, productive and employment-based India,” the Congress said.