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New Delhi, 5 May. Citing a statement by Chief Economic Advisor V. Ananth Nageswaran, the Congress alleged that the government’s policy of ‘take donations, do business’ is slowing down private investment. Party General Secretary Jairam Ramesh referred to a news according to which Nageswaran has said that after the Covid pandemic, the profits of the country’s top 500 companies increased by more than 30 percent but there was no investment at their level. Ramesh posted on That is, there is a slowdown in private corporate investment.

Tax rates have been cut and ease of doing business has reportedly improved significantly, he said. But these steps did not yield the expected results i.e. private investment did not increase. According to him, now the learned Chief Economic Advisor of the Finance Ministry has lent his support to the Congress’ argument by saying that after Covid, India’s largest companies saw their corporate profits increase by 30.8 percent per year, despite no investment by them. The refusal to invest itself is driven by several factors, says Ramesh.

Slow consumer demand growth is due to the stagnant real wage crisis in India. Due to lack of consumer demand, Indian industry is not getting any incentive for investment. He claimed that the raids by ED, CBI and Income Tax have created an environment of business uncertainty and widespread fear among investors. Increasing control over investment-intensive sectors of the economy is also a factor that the Modi government has facilitated and encouraged, the Congress leader said.

He said, Modani is a shining example of this brotherhood. Ramesh said that in such a situation, there is little incentive for corporate groups to invest independently and accept the risk that comes with it whereas profits can be successfully made by paying at the Modi government’s ‘Chanda Lo, Dhandha Do’ business counter.