Ahead of the upcoming Union Budget, Congress leader Jairam Ramesh Thursday launched a pointed critique of the Modi government’s economic performance, dismissing headline GDP growth figures as “deceptive” indicators that conceal deep-seated structural issues.
In a detailed post on X, Ramesh argued that the government’s reported real GDP growth is artificially inflated by unusually low price deflators. He warned that these low deflators are not a sign of economic strength but rather a symptom of stagnant income levels and weak consumer demand affecting the majority of the population outside the wealthiest brackets.
Ramesh highlighted a striking disconnect between corporate health and the broader economy, noting that while Corporate India is currently characterized by record profits and minimal debt, there is a visible reluctance to reinvest in capacity expansion. He questioned why cash-flush companies are prioritizing financial market wealth management over physical investments, asserting that previous tax cuts have failed to stimulate the necessary demand. To address this, he called for the forthcoming Budget to provide a “huge booster dose” to the country’s investment climate.
The Congress general secretary further attributed the slowdown in private investment to the government’s political economy model, which he disparagingly labeled as the “Hum Do Hamare Do-isation” of the economy. He alleged that growth is being driven by government patronage for select market leaders rather than genuine competition or innovation. Ramesh further added that an atmosphere of “Fear, Deception, and Intimidation (FDI)” is stifling the enterprise community and disincentivizing private capital, setting the stage for a heated debate over the quality and inclusivity of India’s growth as the Budget announcement approaches.