Congress leader Jairam Ramesh.
Credit: PTI Photo
New Delhi: Expressing concern over new private investment plans reportedly slumping to a 20-year low in the first quarter of this fiscal, the Congress on Monday alleged India has suffered due to "random policy changes" and an atmosphere of "fear and intimidation".
Congress general secretary, in-charge communications, Jairam Ramesh, in a statement alleged that everyday in the "Modi-Made Anyay Kaal" is a new record of economic failure.
"We have already seen a 45-year high unemployment rate, a 50-year low household savings rate, and the first-ever decrease in real rural consumption. Now, we have another disturbing fact to reckon with. The Hindu reports that in the April-June quarter of this 2023/24 fiscal year, fresh investments announced by corporates is just Rs. 44,000 crore. This is a 20-year low," Ramesh said in a post on X.
"Compare the decade of Manmohan Singh as Prime Minister with that of the non-biological PM. Investment as percentage of GDP (average over time) was 33.4 per cent during the UPA and 28.7 per cent in the Anyay-kaal," he said.
The FDI as percentage of GDP rose from 0.8 per centr in 2004 to 1.7 per cent in 2014 under Manmohan Singh’s stewardship, Ramesh said, adding that as of 2022, it is now 1.5 per cent.
Manufacturing as percentage of GDP (average over time) fell from 16.5 per cent in UPA to 14.5 per cent under the current government, he said.
Ramesh said Gross fixed capital formation (GFCF) in India, or the total investment in fixed assets, has been lower for the entire Modi regime than the lowest point of the UPA.
GFCF touched 35 per cent of GDP in 2007 and it has averaged 32 per cent under the UPA, he said.
At its lowest it was 30 per cent in 2014 and the GFCF under Modi has been below 29 per cent for 10 years, Ramesh said.
"Over the last ten years, India has suffered through a senseless demonetisation, a botched GST rollout, increasing oligopolisation, random policy changes based on the whims and fancies of the non-biological PM, and an atmosphere of fear and intimidation generated by his insecurities," Ramesh said.
Investment, as John Maynard Keynes reminded us, is not just a financial decision — it is a psychological decision as well, he said.
"The last ten years has severely damaged this psychology and there is no evidence that the non-biological PM has recognised this," Ramesh said.