Economy Refuses to Move Forward, Private Investment Sluggish Due To Modi Govt's Policies, Alleges Jairam Ramesh

By Jagadananda Pradhan
(Fast Mail):-- India's economy has become stagnant and private corporate investment remains consistently sluggish due to Modi government's oppressive and suppressive policies.Congress General Secretary Jairam Ramesh said.

In a post on the social media platform 'X,' Ramesh said, "India's economic growth stubbornly refuses to accelerate at the desired - and perfectly feasible - rate. The most important reason for this failure is that private corporate investment continues to remain sluggish, in spite of the generous tax cuts in September 2019 and the PLI cash handouts".

He stated that Modi Govt's own survey indicates that private sector capital expenditure may well be 25% 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.

"Experts say banks are ready to lend, but companies are hesitant to borrow for investment because the current environment is not considered conducive for expansion",he stated.

Ramesh claimed, "Increased demand drives investment. There is no doubt that global uncertainties exist, but there are three clear reasons for the lack of demand in India—stagnant wages, a flawed GST framework, and rising economic inequality."

He said, when consumption itself is declining, companies have no compelling reason to expand production capacity.

The Congress leader emphasized that investment is as much a financial decision as it is influenced by psychological factors.

He alleged that the devastation caused by "tax terrorism," the misuse of the system by certain favoured corporate groups, and the widespread fear and insecurity among the broader business community have further impacted the investment mindset.

Ramesh charged that this inertia in investment is an inevitable consequence of the Modi government's policies of pressure and suppression.

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