New Delhi, July 8 – Congress leader Jairam Ramesh on Monday criticized the BJP-led NDA central government, stating that every day in the “Modi-made ‘anyaay kaal'” is a new record of economic failure. He accused Prime Minister Narendra Modi of failing to recognize the economic challenges facing India.
Key Economic Failures Highlighted
Sharing his statement on X, Ramesh said, “Every day in the Modi-made Anyay Kaal is a new record of economic failure.” He pointed to diminishing corporate investments, which have hit a 20-year low.
In his statement, Ramesh noted several key economic failures:
- A 45-year high unemployment rate.
- A 50-year low in household savings.
- The first-ever decrease in real rural consumption.
He cited a report from The Hindu indicating that in the April-June quarter of the 2024/25 fiscal year, fresh investments announced by corporates amounted to just Rs 44,000 crore, marking a 20-year low.
Comparison with Manmohan Singh’s Tenure
Ramesh compared the current government’s performance with that of former Prime Minister Dr. Manmohan Singh:
- Investment as a percentage of GDP averaged 33.4% during the UPA era, compared to 28.7% under Modi’s tenure.
- FDI as a percentage of GDP rose from 0.8% in 2004 to 1.7% in 2014 under Singh, but has declined to 1.5% by 2022.
- Manufacturing as a percentage of GDP fell from 16.5% under the UPA to 14.5% under the current government.
He also highlighted that Gross Fixed Capital Formation (GFCF) has been lower during Modi’s regime compared to the UPA, with GFCF averaging 32% under the UPA but remaining below 29% for the past decade under Modi.
Critique of Government Policies
Ramesh criticized several government policies, including demonetization, the GST rollout, and increasing oligopolization. He argued that random policy changes and an atmosphere of fear and intimidation have damaged investor confidence.
“Investment, as John Maynard Keynes reminded us, is not just a financial decision—it is a psychological decision as well,” Ramesh said. He added that the last ten years have severely damaged investor psychology and there is no evidence that Prime Minister Modi recognizes this issue.
