New Delhi: The Congress on Monday claimed that the net foreign direct investment has fallen steeply while domestic investors are gripped by “fear and uncertainty”, as it asked the government to support incomes, end its “crony capitalist and tax terrorism” policies, fix the GST, and protect Indian industries from Chinese dumping.
The opposition party’s assertion came after Finance Minister Nirmala Sitharaman’s reported remarks that India’s private sector investment has not kept pace with the growing public expenditure.
In a post on X, Congress general secretary in-charge communications Jairam Ramesh said, “The Finance Minister has finally acknowledged what the INC had been saying for a long time: that private investment continues to be sluggish and is not growing at the pace desired and also expected.”
“This is even after the significant corporate tax cuts of September 2019, undertaken just before the Howdy Modi event that was held in Houston in support of President Trump’s re-election,” Ramesh said.
He further said that net FDI has fallen steeply while domestic investors are gripped by “fear and uncertainty” — thanks in large measure to “tax terrorism and policies that only favour a couple of business groups”.
The growth of mass markets for consumption goods is being hampered by a decade-long stagnant wages crisis and a flawed GST which awaits fundamental reform, Ramesh argued.
Finally, the “dumping” of cheap imports from China — which is taking place despite the loss of Indian territory in Ladakh — has also led to the closure of domestic manufacturing units, foreclosing the possibility of new investments, he said.
“Acknowledgment is the first step. Now comes the hard part — the government needs to take action to support incomes, put an end to its crony capitalist and tax terrorism policies, fix the GST, and protect our industries from Chinese dumping,” Ramesh said.
The Congress has been attacking the government over its handling of the economy, claiming the issues of rising prices, decreasing private investment and stagnating wages were hitting the common people hard.
