Congress targets Sitharaman, says FM ignored ‘fourth F’ of falling investment

The Congress on Tuesday criticised finance minister Nirmala Sitharaman for overlooking what it described as the “all-important fourth F” — falling private investment — while urging the government to focus on fuel, fertiliser and foreign exchange reserves amid the West Asia crisis.

Congress communications chief Jairam Ramesh said the government’s economic concerns extended beyond the “3Fs” highlighted by Sitharaman and argued that declining investment trends reflected deeper weaknesses in the economy.

In a post on X, Ramesh said private corporate investment as a share of GDP had fallen sharply from its pre-2014 peak, while net foreign direct investment inflows had also weakened in recent years.

He further claimed that Indian companies were increasingly seeking stable and profitable opportunities abroad and that several prominent business figures had shifted their residence overseas.

“Investment is as much a financial decision as it is driven by psychological factors,” Ramesh said, arguing that sluggish growth in broad-based consumer demand had discouraged companies from expanding investments domestically.

The Congress leader also accused the Narendra Modi government of creating an atmosphere of “threat, intimidation and intrusiveness”, which he claimed had negatively affected investor confidence. He added that the government’s “know-it-all attitude” had further contributed to uncertainty within the business environment.

“Winning elections through large-scale manipulation of electoral rolls is one thing. But recognising what really ails the economy with humility and sobriety and taking remedial actions is entirely another matter,” he said.

Ramesh’s remarks came a day after Sitharaman stressed the importance of focusing on the “3Fs” — fuel, fertiliser and forex — in light of the ongoing geopolitical tensions in West Asia.

Speaking at the 37th foundation day event of Small Industries Development Bank of India (SIDBI), the finance minister said rising global fuel and fertiliser prices, along with pressure on foreign exchange reserves, were key concerns for the government.

Sitharaman also criticised what she described as a “cynical and pessimistic narrative” surrounding the economy and said India could not afford fearmongering at a time of global uncertainty.

She maintained that the current challenges were largely driven by external developments, while asserting that the domestic economy remained resilient and fundamentally strong.

Highlighting the impact of global tensions, Sitharaman noted that crude oil and gold prices had risen significantly, while fertiliser costs had seen an “unimaginable increase”. She said conserving foreign exchange reserves would therefore be critical in the present economic environment.

With PTI inputs