Particle.news
Download on the App Store

Jairam Ramesh Calls GDP Growth 'Deceptive' Ahead of Budget, Cites Patronage Drag on Investment

He argues unusually low deflators overstate real growth, masking weak demand plus a reluctance to invest.

Overview

  • In posts on X on Jan. 15, the Congress communications chief questioned the credibility of inflation-adjusted GDP figures, saying very low price deflators magnify growth rates.
  • He linked subdued prices to stagnant incomes outside the top tier, claiming this reflects weak consumer demand rather than robust economic health.
  • Ramesh said corporate balance sheets show record profits and low debt with large cash reserves, yet companies are favoring financial investments over capacity expansion.
  • He alleged a 'Hum Do Humaare Do-isation' model, where government patronage shapes market leaders, combined with a climate of 'Fear, Deception and Intimidation' that discourages private investment.
  • Positioning his critique before the Feb. 1 Union Budget, he argued past corporate tax cuts failed to revive demand and cited a business-daily analysis showing strong balance sheets not translating into capex, with no official response reported.