Congress general secretary in-charge communications Jairam Ramesh.
Credit: PTI Photo
New Delhi: Claiming that corporate India is more focused on managing wealth in financial markets instead of making investments in capacity expansion, Congress on Thursday warned that the Modi government's "Hum Do Humaare Do-isation" of the economy will only disincentivise growth in private investment.
General Secretary (Communications) Jairam Ramesh said the headline numbers for inflation-adjusted GDP growth rates are "deceptive", as the price deflators are themselves very low and hence these rates get magnified.
"Low price deflators may cause cheer to the Modi government but they are the result of low consumer demand on account of income levels which have stagnated outside the very top of the pyramid. Corporate India is flush with cash. Profits are at record highs and debt at record lows," he posted on 'X'.
He said the question that the forthcoming Budget has to address boldly is why are companies more focused on managing wealth in financial markets instead of making investments in capacity expansion.
The investment climate clearly needs a huge booster dose, as the slew of tax cuts have clearly failed to stimulate demand, he said, sharing an editorial of a business daily which claimed that strong balance sheets are not leading to higher investment.
He said the answer “unfortunately goes beyond fiscal decisions” but points to the political economy model of the Modi government.
“The 'Hum Do Humaare Do'-isation of the economy, where the 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) that hovers around the enterprise community," he said.
Congress' attack on the government came a fortnight ahead of the presentation of the budget for 2026-27. Congress had been accusing the Modi government of favouring a few industrialists like Adani and Ambani.