The Congress party has criticized the BJP-led government for a perceived sluggishness in private investment, attributing it to a climate of fear created by increased raids from the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and Income Tax (IT) departments. Congress spokesperson Pawan Khera highlighted a significant decline in new project announcements in the first half of FY24 compared to the same period last year, citing a 36.3% fall according to data from the Centre for Monitoring Indian Economy (CMIE).
Khera argued that the constant threat of investigation is deterring businesses from making new investments, leading to economic stagnation. He specifically pointed to Rajasthan, alleging disproportionate raids by central agencies in the state ahead of the upcoming assembly elections, framing it as politically motivated harassment. The Congress claims these actions create an atmosphere of uncertainty and discourage entrepreneurship.
The party further noted a decline in greenfield investments – new projects – while brownfield investments (expansion of existing projects) remain relatively stable. This suggests a lack of confidence in future economic prospects, driving investors to expand existing operations rather than initiate new ones.
Khera presented data showing a decrease in private investment as a percentage of GDP under the current government compared to the UPA era. He also questioned the effectiveness of the government’s Production Linked Incentive (PLI) scheme, suggesting it hasn’t spurred the anticipated level of private investment.
The Congress is demanding a white paper on the issue of private investment, seeking transparency regarding the government’s policies and their impact on the economy. They argue that the government’s focus on using investigative agencies for political purposes is damaging the country’s economic growth and creating a hostile environment for businesses. The party believes a stable and predictable policy environment is crucial to attract private investment and boost economic activity.
