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Congress and Samajwadi Party Demand Radical Reset Over India’s Economy

They warn falling private investment, weak consumer demand and policy uncertainty are eroding jobs and prompting foreign capital to pull back.

Overview

  • The opposition intensified public attacks on the Centre this week, with Congress communications chief Jairam Ramesh on Thursday calling for a “radical reset” in economic policy and accusing the government of running out of ideas.
  • Congress says private investment momentum has stalled despite low corporate taxes and strong company earnings, and it questions whether announced projects are translating into real assets on the ground.
  • The party alleges a growing ‘atmosphere of fear’ from policy flip-flops, administrative orders, tax notices and raids that deters businesses from investing.
  • Both Congress and the Samajwadi Party blamed weak consumer demand, rising inflation forecasts, shrinking FDI and continued Chinese imports for stress in manufacturing and pressure on small traders.
  • Opposition leaders warn the trend could raise unemployment and trigger capital flight, and they framed their critique as a central issue for upcoming political contests while no fresh government response was reported in the coverage.