‘Hum Do Humaare Do-isation’ of the economy discouraging private investment: Congress

The Congress on Thursday alleged that India’s headline inflation-adjusted GDP growth figures are “deceptive” and warned that what it described as the “Hum Do Humaare Do-isation” of the economy is discouraging private investment growth.

Congress general secretary in charge of communications Jairam Ramesh also claimed that an atmosphere of “Fear, Deception and Intimidation (FDI)” prevails within the enterprise community, undermining investor confidence.

In a post on X, Ramesh said the headline GDP growth numbers appear inflated because price deflators are unusually low. “The headline numbers for inflation-adjusted GDP growth rates are deceptive. The price deflators are themselves very low and hence these rates get magnified,” he said.

While such low deflators may prompt optimism within the Modi government, Ramesh argued they are in fact a reflection of weak consumer demand driven by stagnating incomes for all but the wealthiest section of society.

Pointing out that corporate India is flush with cash, profits are at record highs and debt levels at historic lows, Ramesh said the key question the forthcoming Union Budget must confront is why companies are choosing to park wealth in financial markets instead of investing in capacity expansion.

“The investment climate clearly needs a huge booster dose. The slew of tax cuts have clearly failed to stimulate demand,” he claimed.

According to Ramesh, the issue extends beyond fiscal policy and reflects the broader political economy model of the current government.

“The ‘Hum Do Humaare Do-isation’ of the economy — where market leaders emerge from government patronage rather than innovation — will only disincentivise growth in private investment, especially when coupled with the atmosphere of Fear, Deception and Intimidation (FDI) hovering over the enterprise community,” he said.

Ramesh also shared a report by a business daily which argued that strong corporate balance sheets are not translating into higher investment.

The Congress attack comes ahead of the presentation of the Union Budget on 1 February.

With PTI inputs