On Sunday (January 19), the Congress party accused the central government of implementing retrograde policies that have severely impacted investor confidence in India.
The opposition party criticized the BJP for transforming the ease of doing business into an unease of doing business, emphasizing the need for the upcoming Union Budget to address this issue by eliminating "raid raj" and tax terrorism.
Ahead of the Union Budget, Congress urged the government to take decisive steps to protect Indian manufacturing jobs and strengthen wages and purchasing power.
Congress General Secretary in-charge of Communications, Jairam Ramesh, strongly criticized the Modi government for its repeated claims of improving India’s ease of doing business.
Ramesh pointed out that, over the past decade, India has experienced a significant decline in private investment, reaching record lows. He noted that under Manmohan Singh’s tenure, private investment consistently ranged between 25-30% of GDP.
However, since 2014, it has collapsed to the 20-25% range. This sluggish investment has coincided with a mass exodus of high-net-worth individuals, with over 17.5 lakh Indians acquiring foreign citizenship in the past decade.
Sharing his statement on X, Ramesh highlighted that between 2022 and 2025, an estimated 21,300 dollar millionaires left India.
“The 2025/26 Union Budget will be presented thirteen days from today. Here is our statement on how the Modi Government has converted the ease of doing business to unease in doing business – thereby depressing private investment sentiment. Radical action is necessary to fix the damage,” Ramesh wrote on X.
In his statement, he attributed this exodus to three key reasons. Ramesh criticized the GST system for its multiplicity of rates, leading to widespread confusion and significant GST evasion, amounting to Rs 2.01 lakh crore—nearly double the Rs 1.01 lakh crore reported in FY23.
“Firstly, a complicated GST. According to former Chief Economic Advisor Arvind Subramanian, the GST, which the PM hailed as a Good and Simple Tax, actually has up to 100 different tax rates, including cesses,” he said.
He noted that approximately 18,000 fraudulent entities had been uncovered, with many more likely undetected.
Secondly, Ramesh pointed out that despite claims otherwise, Chinese imports into India remain rampant, resulting in a record trade deficit of $85 billion in 2023-24. This has severely affected Indian manufacturing, especially in labor-intensive sectors.
“Secondly, despite claims to the contrary, Chinese imports into India continue unabated, with a record trade deficit of $85 billion in 2023-24. This has severely impacted Indian manufacturing, particularly in labor-intensive sectors,” Ramesh added.
Lastly, Ramesh highlighted stagnant wages as a significant factor contributing to reduced consumption growth. He pointed to data from the Ministry of Agriculture, which shows real wages for agricultural labourers growing at just 6.8% per year under the UPA, compared to a decline of 1.3% per year under the Modi government.
“According to Ministry of Agriculture data, real wages for agricultural labor grew by 6.8 percent per year under the UPA, but have declined by 1.3 percent per year under the Modi government,” he said.
Additionally, he said that Periodic Labour Force Survey data revealed that average real earnings stagnated between 2017 and 2022 across all worker categories—salaried, casual, and self-employed.
Ramesh asserted that these retrograde policies have shattered investor confidence in India. To rectify this, he called for the 2025/26 Union Budget to eliminate "raid raj" and tax terrorism, protect Indian manufacturing jobs, and implement decisive actions to boost wages and purchasing power.
Only bold steps will restore investor confidence and stimulate business investment, he concluded.
The opposition party criticized the BJP for transforming the ease of doing business into an unease of doing business, emphasizing the need for the upcoming Union Budget to address this issue by eliminating "raid raj" and tax terrorism.
Ahead of the Union Budget, Congress urged the government to take decisive steps to protect Indian manufacturing jobs and strengthen wages and purchasing power.
Congress General Secretary in-charge of Communications, Jairam Ramesh, strongly criticized the Modi government for its repeated claims of improving India’s ease of doing business.
Ramesh pointed out that, over the past decade, India has experienced a significant decline in private investment, reaching record lows. He noted that under Manmohan Singh’s tenure, private investment consistently ranged between 25-30% of GDP.
However, since 2014, it has collapsed to the 20-25% range. This sluggish investment has coincided with a mass exodus of high-net-worth individuals, with over 17.5 lakh Indians acquiring foreign citizenship in the past decade.
Sharing his statement on X, Ramesh highlighted that between 2022 and 2025, an estimated 21,300 dollar millionaires left India.
“The 2025/26 Union Budget will be presented thirteen days from today. Here is our statement on how the Modi Government has converted the ease of doing business to unease in doing business – thereby depressing private investment sentiment. Radical action is necessary to fix the damage,” Ramesh wrote on X.
The 2025/26 Union Budget will be presented thirteen days from today. Here is our statement on how the Modi Govt has converted the ease of doing business to unease in doing business - thereby depressing private investment sentiment. Radical action is necessary to fix the damage. pic.twitter.com/guVyKeFOLf
— Jairam Ramesh (@Jairam_Ramesh) January 19, 2025
In his statement, he attributed this exodus to three key reasons. Ramesh criticized the GST system for its multiplicity of rates, leading to widespread confusion and significant GST evasion, amounting to Rs 2.01 lakh crore—nearly double the Rs 1.01 lakh crore reported in FY23.
“Firstly, a complicated GST. According to former Chief Economic Advisor Arvind Subramanian, the GST, which the PM hailed as a Good and Simple Tax, actually has up to 100 different tax rates, including cesses,” he said.
He noted that approximately 18,000 fraudulent entities had been uncovered, with many more likely undetected.
Secondly, Ramesh pointed out that despite claims otherwise, Chinese imports into India remain rampant, resulting in a record trade deficit of $85 billion in 2023-24. This has severely affected Indian manufacturing, especially in labor-intensive sectors.
“Secondly, despite claims to the contrary, Chinese imports into India continue unabated, with a record trade deficit of $85 billion in 2023-24. This has severely impacted Indian manufacturing, particularly in labor-intensive sectors,” Ramesh added.
Lastly, Ramesh highlighted stagnant wages as a significant factor contributing to reduced consumption growth. He pointed to data from the Ministry of Agriculture, which shows real wages for agricultural labourers growing at just 6.8% per year under the UPA, compared to a decline of 1.3% per year under the Modi government.
“According to Ministry of Agriculture data, real wages for agricultural labor grew by 6.8 percent per year under the UPA, but have declined by 1.3 percent per year under the Modi government,” he said.
Additionally, he said that Periodic Labour Force Survey data revealed that average real earnings stagnated between 2017 and 2022 across all worker categories—salaried, casual, and self-employed.
Ramesh asserted that these retrograde policies have shattered investor confidence in India. To rectify this, he called for the 2025/26 Union Budget to eliminate "raid raj" and tax terrorism, protect Indian manufacturing jobs, and implement decisive actions to boost wages and purchasing power.
Only bold steps will restore investor confidence and stimulate business investment, he concluded.
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