‘Raid raj’ behind weak investment: Congress targets govt

The Indian National Congress on Tuesday criticised the Modi government over what it described as a persistent slowdown in private corporate investment, arguing that key economic policies have failed to deliver the expected results.

Party general secretary Jairam Ramesh said the reluctance of companies to invest has become a major obstacle to achieving higher economic growth. He pointed out that despite reductions in corporate tax rates and claims of improved ease of doing business, private investment has not picked up as anticipated.

Ramesh argued that the lack of investment is linked to weak consumer demand, which he attributed to stagnant real wages. “In the absence of sufficient demand, there is little incentive for companies to expand capacity or undertake fresh investments,” he said.

He also alleged that what he termed an enforcement-driven environment — referring to actions by agencies such as the Enforcement Directorate, the Central Bureau of Investigation and the Income Tax Department — has created uncertainty and discouraged businesses from taking risks.

Citing remarks by V. Anantha Nageswaran, the government’s chief economic adviser, Ramesh said that even as large firms have recorded strong profit growth in the post-pandemic period, their investment levels have remained subdued. According to him, this disconnect underscores deeper structural concerns within the economy.

The Congress leader further accused the government of encouraging concentration in certain sectors, claiming that it has reduced incentives for independent investment by private players.

The remarks come amid an ongoing debate on the role of private sector investment in driving India’s economic growth, with policymakers and analysts closely watching trends in capital formation and demand recovery.

With PTI inputs