Congress Criticizes Modi Government Over Investment Sluggishness

The Congress party criticized the Modi government for sluggish private corporate investment, attributing it to slow consumer demand, stagnant wages, and the ED-CBI-IT 'raid raj'. Despite tax cuts and ease of business improvements, investment remains low, affecting GDP growth. Cronyism and uncertainty are also highlighted as factors.

On Tuesday, the Congress party launched a scathing attack on the Modi government's handling of private corporate investment, accusing it of fostering an atmosphere of sluggish growth. The party attributed this slow investment to factors including stagnant consumer demand due to stagnant real wages and a culture of fear stemming from enforcement agencies' activities, termed as 'raid raj'.

Jairam Ramesh, Congress' general secretary in-charge of communications, emphasized the party's ongoing concerns about the economy's inability to reach higher GDP growth rates due to these investment challenges. He argued that despite lowered tax rates and allegedly improved ease of business, the expected surge in private investment has failed to manifest.

Ramesh further pointed out that while corporate profits in leading companies soared post-COVID, there has been a noticeable reluctance to reinvest these profits back into the economy. He attributed this to a business climate replete with cronyism and uncertainty, exacerbated by government policies that favor certain corporations, embodied by the term 'Modani'.