Jairam Ramesh Critiques Modi Government's Economic Strategy, Introduces 'Fourth F'
Jairam Ramesh slams Modi govt's economic policies, cites 'fourth F'
Image: Asianet Newsable
Congress leader Jairam Ramesh criticized the Modi government's economic policies, emphasizing the overlooked 'fourth F'—falling rates of private investment. He highlighted declining foreign direct investment and weak consumer demand as major concerns, contrasting with Finance Minister Nirmala Sitharaman's focus on fuel, fertilizer, and foreign exchange.
- 01Jairam Ramesh introduced the 'fourth F'—falling rates of private investment—in response to Finance Minister Nirmala Sitharaman's focus on three economic concerns: fuel, fertilizer, and foreign exchange.
- 02Ramesh pointed out that net foreign direct investment (FDI) flows have declined, and private corporate investment is at half the pre-2014 peak level.
- 03He attributed the decline in private investment to weak consumer demand and a climate of intimidation under the Modi government.
- 04Sitharaman acknowledged external pressures on India's economy due to volatile global prices but asserted that domestic indicators show resilience.
- 05The Centre has reduced excise duty on petrol and diesel by ₹10 per litre to mitigate the impact of rising global crude prices.
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Jairam Ramesh, a senior leader of the Indian National Congress, criticized the economic policies of Prime Minister Narendra Modi's government, particularly highlighting the neglect of the 'fourth F'—falling rates of private investment. In a statement on social media, Ramesh pointed out that Finance Minister Nirmala Sitharaman's focus on fuel, fertilizer, and foreign exchange failed to address the significant decline in private corporate investment and foreign direct investment (FDI). He noted that such investments are now at half of their peak levels before 2014, as Indian businesses increasingly seek opportunities abroad. Ramesh attributed this trend to weak consumer demand and a pervasive atmosphere of intimidation discouraging new investments. This critique follows Sitharaman's recent comments on external economic challenges, where she acknowledged the pressures from rising global prices but maintained that India's domestic economy remains resilient. She also mentioned the government's decision to cut excise duty on fuel to alleviate the burden on citizens and businesses. Ramesh's remarks underscore ongoing concerns about the health of India's economy amid these challenges.
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The decline in private investment could lead to reduced economic growth and job creation in India.
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