India's Private Sector Investment Slump: Congress Blames Modi Govt
By Rediff Money Desk, New Delhi Jan 06, 2025 12:04
Congress criticizes the Modi government for the decline in private sector investment in India, citing low FDI and sluggish domestic investment. The party urges the government to address the issue in the upcoming budget.

Illustration: Dominic Xavier/Rediff.com
New Delhi, Jan 6 (PTI) The private sector's reluctance to invest in India is a corporate motion of no-confidence in the Narendra Modi government, the Congress claimed on Monday.
The opposition party also urged the government to take measures in the upcoming Union budget to stimulate and sustain domestic investment in the country that, it claimed, was on the decline.
Congress general secretary in-charge communications Jairam Ramesh said the investment environment in India had been sluggish in the "Modi decade".
In a post on X, he said the Gross Fixed Capital Formation had fallen from an average of 32 per cent of GDP during Manmohan Singh's prime ministerial decade to consistently being below 29 per cent of GDP in the past 10 years.
"Investment is sluggish because mass consumption is not accelerating, tax and other authorities are threatening and intimidating businesses, and because of the growing perception that only four-five business groups can grow in the Modi regime," he said.
"Now comes fresh evidence of the private sector's reluctance to invest in India under this government -- net foreign direct investment (FDI) fell to a 12-year low in April-October this year (2024). Gross FDI inflows have stagnated," he added.
Indian firms are increasingly choosing to invest abroad rather than at home, Ramesh claimed. "This is a corporate motion of no-confidence in the Modi government."
Asserting that FDI was very important, he said, "But more fundamental is DI -- Domestic Investment. How to stimulate and sustain DI has to be the central concern of the Union budget, to be present 26 days from today."
The Union budget will be presented on February 1.
The opposition party also urged the government to take measures in the upcoming Union budget to stimulate and sustain domestic investment in the country that, it claimed, was on the decline.
Congress general secretary in-charge communications Jairam Ramesh said the investment environment in India had been sluggish in the "Modi decade".
In a post on X, he said the Gross Fixed Capital Formation had fallen from an average of 32 per cent of GDP during Manmohan Singh's prime ministerial decade to consistently being below 29 per cent of GDP in the past 10 years.
"Investment is sluggish because mass consumption is not accelerating, tax and other authorities are threatening and intimidating businesses, and because of the growing perception that only four-five business groups can grow in the Modi regime," he said.
"Now comes fresh evidence of the private sector's reluctance to invest in India under this government -- net foreign direct investment (FDI) fell to a 12-year low in April-October this year (2024). Gross FDI inflows have stagnated," he added.
Indian firms are increasingly choosing to invest abroad rather than at home, Ramesh claimed. "This is a corporate motion of no-confidence in the Modi government."
Asserting that FDI was very important, he said, "But more fundamental is DI -- Domestic Investment. How to stimulate and sustain DI has to be the central concern of the Union budget, to be present 26 days from today."
The Union budget will be presented on February 1.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 9.47 (+ 2.05)
- 61048233
- Thinkink Picturez
- 0.45 ( 0.00)
- 22664084
- G G Engineering
- 1.22 ( -3.94)
- 18109205
- Srestha Finvest
- 0.69 ( -1.43)
- 12131937
- Hathway Cable & Data
- 14.75 ( -2.12)
- 11583833
MORE NEWS

Samsung India Employees Strike Over Union...
Employees at Samsung's Sriperumbudur plant in Tamil Nadu are on strike, demanding...
HC Robotics to Invest Rs 500 Cr in Telangana,...
Centillion Networks'' subsidiary HC Robotics will invest Rs 500 crore in Telangana,...

Ajax Engineering Raises Rs 379 Cr Ahead of IPO
Ajax Engineering, backed by Kedaara Capital, has secured Rs 379 crore from anchor...