Congress alleged the Modi government has failed to address slowing growth and weak private investment.
Jairam Ramesh said stagnant wages and weak consumer demand were hurting economic momentum.
The Congress leader also raised concerns over shrinking FDI and policy uncertainty for businesses.
The Congress on Thursday expressed concern over the state of the economy and alleged that Prime Minister Narendra Modi was focused on managing elections instead of addressing economic challenges facing the country.
According to PTI, Congress general secretary in-charge communications Jairam Ramesh said sentiment around the Indian economy had weakened to the point where even supporters of the Modi government were publicly voicing concern.
“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,” he said in a statement.
“There is nothing new about these concerns. The Indian National Congress has been voicing them for some time, the most important of which relates to the tepid investment climate,” he said.
Ramesh said economic growth could not be accelerated and sustained without a significant increase in private investment.
“This rate of private investment has not moved ahead because real wages have been stagnating thereby suppressing growth in consumption across income categories. In the absence of consumer demand, there is no incentive for India Inc to invest,” he said.
Reported PTI, the Congress leader also cited what he described as a prevailing atmosphere of fear and uncertainty among businesses due to “policy flip-flops, administrative orders, tax notices, raids and threats of raids by tax authorities and investigative agencies”.
He alleged that continued “dumping” of imports from China’s industrial over-capacity had damaged demand for locally manufactured goods.
“Continued 'dumping' of imports from China's industrial over-capacity has wrecked demand for local goods across the manufacturing sector,” he said.
Ramesh also alleged growing concentration of ownership through government-backed takeovers by favoured business groups.
“Growing concentration of ownership, aided by government-enabled takeovers by the PM's closest friends. Modani is the shining example of this cronyism,” the Congress leader said.
Referring to Prime Minister Modi gifting toffees to Italian Prime Minister Giorgia Meloni, Ramesh said the prime minister was “busy distributing toffees and engaging in pious pleas to the public”.
“The ground is slipping beneath the country's feet. We need a radical reset in economic policy-making, but the Modi Government has run out of ideas - other than the usual self-glorification,” he said.
“The PM is managing elections through Gyanesh but urgently needs new Gyan on the economy,” he alleged, in a reference to Chief Election Commissioner Gyanesh Kumar.
PTI reported that Ramesh also questioned the lack of investment momentum despite record-low corporate tax rates and high corporate earnings.
“Corporate India's tax rates are at record lows and its earnings are at record highs,” he said.
“Yet, investment momentum is conspicuously absent and those who are in a position to invest are relocating and/or investing abroad in increasing numbers,” he added.
He also questioned how many investment announcements were translating into projects on the ground.
“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,” Ramesh said.
(With inputs from PTI)
