The Congress on Thursday launched a sharp attack on the Narendra Modi government over the state of the Indian economy, alleging that declining private investment, weak consumer demand, and policy uncertainty had pushed the economy into a troubling phase that now worries even the government’s traditional supporters.
In a statement issued on Thursday, Congress general secretary in charge of communications Jairam Ramesh claimed that “the sentiment on the Indian economy has taken such a downturn that even the Modi Govt’s professional cheerleaders have begun to give public expression to their concerns.”
He alleged that inflation forecasts were rising while growth projections were slowing, and said foreign direct investment continued to decline. “Supply chains have been so gravely mismanaged that the Prime Minister has now gone on record asking consumers to reduce their consumption,” Ramesh said.
The Congress leader argued that the most pressing concern facing the economy was the sluggish pace of private investment, which he said was essential for sustaining higher economic growth.
According to Ramesh, stagnant real wages had weakened consumption demand across income groups, discouraging companies from making fresh investments. “In the absence of consumer demand, there is no incentive for India Inc to invest,” he said.
He also accused the government of creating an “atmosphere of fear and business uncertainty” through “policy flip-flops, administrative orders, tax notices, raids and threats of raids by tax authorities and investigative agencies.”
The Congress further alleged that cheap imports from China had damaged domestic manufacturing demand and criticised what it described as growing concentration of economic power among a few large business groups.
“Modani is the shining example of this cronyism,” Ramesh said, using an Opposition-coined term referring to the alleged proximity between the government and certain industrial conglomerates.
The statement also targeted the government’s electoral funding framework, alleging that corporates found it easier to secure profits through political proximity rather than undertaking independent investment risks. Referring to the Opposition’s criticism of political funding practices, Ramesh said businesses were benefiting from a “Chanda Lo Dhandha Do” system.
The Congress leader noted that while corporate tax rates were at historic lows and company earnings remained high, actual investment activity had failed to gather momentum. “Grand investment announcements continue to get made but how many of these intentions get converted into actual assets on the ground is open to serious question,” he said.
Ramesh also took a swipe at Prime Minister Narendra Modi, accusing him of focusing on image-building exercises instead of addressing deeper economic challenges.
“The Prime Minister is busy distributing toffees and engaging in pious pleas to the public. The ground is slipping beneath the country’s feet,” he said.
Calling for major changes in economic policymaking, the Congress leader said the government had “run out of ideas” and required a “radical reset” to revive investment and growth.
The statement comes amid an intensifying political debate over inflation, unemployment, private sector investment and slowing global economic conditions, issues that are expected to feature prominently in upcoming political campaigns and parliamentary discussions.
