The Congress party asserts that India’s economic growth is hampered by the Modi government’s oppressive policies, leading to sluggish private corporate investment despite tax cuts and production-linked incentives. Jairam Ramesh highlights stagnant wages, a distorted GST structure, and growing inequalities as factors holding back demand growth and discouraging corporate investment due to a climate of fear and insecurity.The Congress on Saturday said the country’s economic and investment growth is sluggish due to the Narendra Modi government’s “policies of suppression and oppression”.
In a post on X, Congress general secretary, communications, Jairam Ramesh said India’s economic growth “stubbornly refuses” to accelerate at the desired and perfectly feasible rate.
The most important reason for this failure, he said, is that private corporate investment continues to remain sluggish in spite of the generous tax cuts in September 2019 and the PLI (production-linked incentive) cash handouts.
Ramesh said the Modi Government’s own survey indicates that private sector capital expenditure may well be 25 per cent lower in 2025-26 as compared to the previous year.
“Informed analysts have opined that while banks are willing to lend, companies are unwilling to borrow since the investment environment is not seen to be conducive to expansion.
“Growing demand creates a climate for investment. There are undoubtedly global uncertainties but within India, it is clear that demand growth is being held back because of stagnant wages, a distorted GST structure, and sharpening of inequalities,” he said in the post.
Ramesh added that amid a widespread consumption slowdown, “there is no systematic incentive for corporates to invest in the creation of additional capacity”.
The Congress general secretary said investment is as much a financial decision as it is influenced by psychological factors.
“These factors have come into greater prominence because of the havoc created by tax terrorism, the gaming of the system by a favoured few, and a feeling of fear and insecurity in the larger corporate world.
“Ultimately, the investment depression is the inevitable consequence of the Modi government’s policies of suppression and oppression,” Ramesh alleged.
