The Congress criticized the inflation-adjusted GDP growth rates, claiming they provide a deceptive view of the economy by masking weak demand and structural issues. Jairam Ramesh, Congress General Secretary for Communications, highlighted that the low price deflators used inflate the growth figures, reflecting subdued consumer demand. He emphasized the disconnect between corporate profits and investment, noting that despite high cash reserves and low debts, companies are not increasing capital expenditure.
Ramesh urged the upcoming Union Budget to address the lack of investment, questioning why companies prioritize managing wealth in financial markets over expanding capacity. He criticized the government’s economic strategy, stating that tax cuts for corporations have not boosted demand as intended. Ramesh also raised concerns about market concentration and government favoritism hindering genuine competition and private investment.
