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Informist, Thursday, May 21, 2026

 

NEW DELHI – The Indian National Congress Thursday said the country's economy was in such dire straits that even the government's own cheerleaders had openly started expressing concerns. It said the situation demands "sweeping" changes in fiscal policies.

 

"Inflation projections are rising rapidly, while growth projections are declining significantly," Congress Rajya Sabha member Jairam Ramesh said in a statement. "Foreign direct investment continues to shrink, while supply chains are so badly managed that the prime minister himself is now appealing to consumers to reduce their consumption."

 

He said that his party has been raising these issues for quite some time, with the most important concern being the sluggish investment climate. "Economic growth cannot be accelerated or sustained at high levels for a long time without a significant increase in the rate of private investment," he said as he pointed out some of the key factors behind investor apathy.

 

"Real wages have been stagnant, which is causing reduced consumption across varied income groups. In the absence of demand, businesses have little incentive to invest," he said. The former Union minister said persistent "dumping" from China's excess industrial output had severely affected demand for local products in the manufacturing sector.

 

Ramesh hit out at the ruling Bharatiya Janata Party's alleged quid pro quo with select corporate houses. "Businesses have little incentive to invest independently and take the associated risks when they see that they can rake the moolah by making payments at the Modi government's 'chanda do, dhandha lo' (give donations, bag contracts) counter."

 

He claimed that frequent changes in policies, administrative orders, tax notices, raids, and threats of raids by tax authorities and investigating agencies have created "an environment of fear and uncertainty" among investors. Investors, he said, were moving to foreign markets.

 

The senior Congress leader questioned the logic behind keeping corporate tax low despite soaring profits. "The prime minister is busy distributing toffees and making moral appeal to the public. The ground is slipping beneath the feet of the country. We need a radical change in economic policies, but the Modi government has no new ideas left except self-praise," he said.  End

 

Reported by Asim Khan

Edited by Avishek Dutta

 

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