New Delhi

Indian National Congress on Thursday expressed concern over the state of the economy and alleged that the Narendra Modi-led government has “run out of ideas” to revive growth and investment.

In a statement, Congress general secretary in-charge communications Jairam Ramesh claimed that economic indicators were showing signs of stress, with inflation forecasts rising and growth projections weakening.

He alleged that even supporters of the government had begun publicly voicing concerns over the economy.

“Inflation forecasts are sharply up while growth projections are appreciably down. FDI continues to shrink and supply chains have been so gravely mismanaged that the Prime Minister has now gone on record asking consumers to reduce their consumption,” Ramesh said.

The Congress leader argued that his party had repeatedly raised concerns regarding weak private investment and sluggish consumer demand.

According to him, stagnant real wages have constrained consumption growth, discouraging companies from making fresh investments.

“In the absence of consumer demand, there is no incentive for India Inc to invest,” he said.

Ramesh also alleged that the prevailing business environment was marked by uncertainty due to policy reversals, tax notices and investigations by enforcement agencies.

He further claimed that cheap imports from China had adversely affected domestic manufacturing demand.

Criticising what he termed concentration of economic power, Ramesh alleged that a few business groups close to the government had benefited disproportionately.

“Modani is the shining example of this cronyism,” he said, referring to a term frequently used by the Congress to target industrialists Gautam Adani and Mukesh Ambani.

He also accused the government of encouraging a system where businesses could profit through political proximity rather than independent risk-taking and investment.

The Congress leader noted that while corporate tax rates are low and company earnings remain strong, actual investment activity has not picked up significantly.

“Grand investment announcements continue to get made but how many of these intentions get converted into actual assets on the ground is open to serious question,” he said.

Referring indirectly to Prime Minister Narendra Modi gifting “Melody” toffees to Italian Prime Minister Giorgia Meloni during his Italy visit, Ramesh remarked that the prime minister was “busy distributing toffees and engaging in pious pleas to the public” while the economy required urgent policy intervention.

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“The PM is managing elections through Gyanesh but urgently needs new Gyan on the economy,” he alleged, in an apparent reference to Chief Election Commissioner Gyanesh Kumar.