Congress advises Modi govt to boost consumption and ensure stability in Indian economy

(Fast Mail):--Congress General Secretary Jairam Ramesh, citing a report by the International Monetary Fund (IMF) on Thursday,has  criticised the central government’s economic policies and stated that the way out of the economic slowdown lies in boosting public consumption, ensuring stability in economic policies, and restructuring trade policy.

Ramesh claimed that the IMF report highlights the gap between the government’s rhetoric and economic reality, which remains the biggest challenge in reviving private investment in India.

In a post on ‘X’, Ramesh said, “The International Monetary Fund in its recently released annual report of ‘Reviving Private Investment in India’ critisized indirectly the policies and actions of the Modi government to some extent.”

He claimed that the report underscores the sluggish growth of private investment in India and notes that “private corporate investment, in particular, has been sluggish compared to historical averages.”

The Congress leader said, “The IMF has pointed out that capacity utilization in the manufacturing sector reached only 75.8 percent in July-September 2024, and most companies expected their production capacity to be sufficient to meet demand over the next six months. This decline in production expectations in the manufacturing sector reflects the slowdown in consumption growth, which has been widely discussed earlier.”

He also said that the IMF attributed the much-touted increase in labor force participation rate largely to a rise in self-employment and unpaid family work. He remarked that this is the same point the Congress has been consistently raising. He added that the IMF report makes it clear that the gap between the government’s rhetoric and economic reality is the biggest hurdle in reviving private investment in India.

Ramesh claimed that this gross failure stems from the inability to address fundamental principles and a persistent focus on a handful of politically connected monopolists. He said, “The Congress has consistently argued that the way out of India’s current economic slowdown rests on three key pillars. These three pillars are boosting public consumption, ensuring stability in economic policies, and restructuring trade policy.”