New Delhi, May 21 (H.S.): Congress General Secretary (Communications) Jairam Ramesh on Thursday expressed concern over the rise in petroleum prices and inflation in the country amid the ongoing West Asia crisis. He said the condition of the Indian economy has deteriorated to such an extent that the country now requires major changes in its economic policies.

Ramesh said the state of the Indian economy has become so alarming that even supporters of the Modi government have started publicly expressing concern. He stated that inflation projections are rising rapidly while growth forecasts are declining. According to him, foreign direct investment continues to fall, and supply chain management has become so weak that the Prime Minister has had to appeal to consumers to reduce consumption.

The Congress leader said the investment climate remains extremely weak and there has been no significant improvement in the rate of private investment. He listed several reasons behind the situation, including stagnation in real wages, weak consumer demand, policy uncertainty, and fear created by raids conducted by tax authorities. He also cited the adverse impact of cheap imports from China on domestic industries, increasing monopolistic trends due to government-backed acquisitions, and a growing tendency among corporate entities to seek profits through political donations rather than independent investments.

Ramesh further said that corporate tax rates in India are currently at record low levels while corporate incomes are at record highs, and the stock market also appears strong. However, he alleged that investment momentum has disappeared. He claimed that companies capable of investing are increasingly moving their investments abroad. He accused Prime Minister Narendra Modi of remaining occupied with giving assurances and advice to the public while the country’s economic foundations continue to weaken.

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Hindusthan Samachar / Jun Sarkar