By AMIT KUMAR
Congress communications chief Jairam Ramesh alleged weakening economic sentiment and called for a radical reset in policymaking, accusing the Modi government of failing to revive private investment.
New Delhi, May 21, 2026 — The opposition Indian National Congress on Thursday intensified its attack on the Modi government’s economic management, with party communications chief Jairam Ramesh claiming that concerns over the economy have become so pronounced that “even the Modi Government’s professional cheerleaders” are now publicly expressing anxiety.
In a media statement, Ramesh said inflation projections were rising while growth forecasts had weakened, arguing that foreign direct investment (FDI) inflows continued to shrink and supply chain management problems had deepened.
“The sentiment on the Indian economy has taken such a downturn that even the Modi government’s professional cheerleaders have begun to give public expression to their concerns,” Ramesh said.
He further alleged that the country’s investment climate remained weak despite strong corporate earnings and buoyant stock market valuations.
According to the Congress leader, sustained economic growth requires a significant rise in private investment, but investment momentum has remained subdued because of multiple structural and policy issues.
Ramesh listed stagnating real wages as one of the key factors, arguing that weak income growth has suppressed consumer demand across income groups.
“In the absence of consumer demand, there is no incentive for India Inc to invest,” he said.
The Congress leader also cited what he described as a climate of “fear and business uncertainty,” alleging that policy reversals, tax notices, administrative actions and investigations by enforcement agencies had created apprehension within the investment community.
He further accused the government of failing to protect domestic industry from cheap imports linked to Chinese industrial overcapacity, claiming it had weakened local manufacturing demand.
Ramesh also renewed the opposition’s allegations of crony capitalism, referring to the Congress coinage “Modani” while alleging concentration of economic ownership and preferential treatment toward certain business groups.
“Corporate India’s tax rates are at record lows and its earnings are at record highs. Yet investment momentum is conspicuously absent,” he said, adding that some investors were increasingly looking overseas.
Questioning the conversion of large investment announcements into actual projects on the ground, Ramesh argued that India needed a “radical reset” in economic policymaking.
“The Modi Government has run out of ideas other than self-glorification,” he said. In a political swipe at Prime Minister Narendra Modi, Ramesh remarked that while the Prime Minister was “managing elections through Gyanesh,” he urgently needed “new gyan on the economy.”
The government has repeatedly defended its economic record, citing infrastructure expansion, manufacturing initiatives, welfare programmes and India’s position as one of the world’s fastest-growing major economies.
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