Overview
- Congress, which invoked the chief economic adviser’s figures Tuesday, said big-company profits grew about 30.8% a year after COVID even as private investment stayed disappointing.
- Jairam Ramesh argued that firms are holding back because household demand is weak, linking it to stagnant real wages that leave companies little reason to expand capacity.
- He alleged a 'raid raj' by the Enforcement Directorate, Central Bureau of Investigation, and Income Tax Department that he said creates uncertainty and scares investors.
- Ramesh also accused the government of cronyism and sector concentration, citing his 'Modani' shorthand and claiming companies can profit by political payments he called 'Chanda Lo Dhandha Do'.
- He said corporate tax cuts and claimed ease-of-doing-business gains have not lifted capital spending, while reports offered no government rebuttal or independent proof for his causal claims.