Congress General Secretary Jairam Ramesh criticized the government for its handling of private investment, which he said has fallen to record lows. He attributed this decline to a punitive tax regime encompassing both GST and income tax, labeling it “tax terrorism.” Ramesh noted that private domestic investment, which was consistently 25-30% of GDP during Manmohan Singh’s tenure, has now slumped to 20-25% under the Modi government.

Additionally, he highlighted a significant exodus of high-net-worth individuals, with over 17.5 lakh Indians acquiring foreign citizenship in the past decade and 21,300 dollar millionaires leaving India between 2022 and 2025.

Ramesh identified three key issues undermining business confidence: a complicated GST structure, unchecked Chinese imports, and weak consumption. He pointed out that GST evasion had reached an alarming Rs 2.01 lakh crore, while the trade deficit with China hit a record $85 billion in 2023-24, harming domestic manufacturing.

Citing stagnant wages, Ramesh said average real earnings across salaried, casual, and self-employed workers have remained flat since 2017. Agricultural wages, which grew annually by 6.8% under the UPA, have declined by 1.3% under the current government.

To restore investor confidence, Ramesh urged the government to simplify GST, curb Chinese imports, and implement measures to stimulate domestic consumption and investment. “Radical action is necessary to fix the damage,” he asserted, emphasizing the urgent need for reforms in the upcoming Union Budget.

Congress General Secretary Jairam Ramesh criticized the government for its handling of private investment, which he said has fallen to record lows. He attributed this decline to a punitive tax regime encompassing both GST and income tax, labeling it “tax terrorism.” Ramesh noted that private domestic investment, which was consistently 25-30% of GDP during Manmohan Singh’s tenure, has now slumped to 20-25% under the Modi government.

Additionally, he highlighted a significant exodus of high-net-worth individuals, with over 17.5 lakh Indians acquiring foreign citizenship in the past decade and 21,300 dollar millionaires leaving India between 2022 and 2025.

Ramesh identified three key issues undermining business confidence: a complicated GST structure, unchecked Chinese imports, and weak consumption. He pointed out that GST evasion had reached an alarming Rs 2.01 lakh crore, while the trade deficit with China hit a record $85 billion in 2023-24, harming domestic manufacturing.

Citing stagnant wages, Ramesh said average real earnings across salaried, casual, and self-employed workers have remained flat since 2017. Agricultural wages, which grew annually by 6.8% under the UPA, have declined by 1.3% under the current government.

To restore investor confidence, Ramesh urged the government to simplify GST, curb Chinese imports, and implement measures to stimulate domestic consumption and investment. “Radical action is necessary to fix the damage,” he asserted, emphasizing the urgent need for reforms in the upcoming Union Budget.