India's Economic Slowdown: Blame It on Government Policies?
The Congress party criticizes the Modi government's policies, attributing slow economic growth to 'suppression and oppression'. Jairam Ramesh points to sluggish private investment despite tax cuts and PLI handouts. Analysts suggest that despite banks being willing to lend, companies hesitate to borrow due to an unconducive investment environment.
- Country:
- India
The Congress on Saturday blamed the sluggish pace of India's economic and investment growth on the policies of the Modi government, labeling them as 'suppression and oppression'.
Jairam Ramesh, the Congress general secretary, expressed his concerns in a post, stating that while India's economic growth should be accelerating, it remains stubbornly slow, primarily due to inadequate private investment despite generous tax cuts in 2019 and production-linked incentive cash handouts.
Ramesh cited the Modi Government's own survey, which suggests a potential 25 percent decline in private sector capital expenditure by 2025-26. He blamed stagnant wages, a distorted GST structure, and widening inequalities for holding back demand growth, further arguing that a climate of fear and tax terrorism is deterring corporate investment.
(With inputs from agencies.)
Google News