The Congress on Thursday (June 25, 2026) said the lack of buoyancy in private corporate investment is India's most "serious challenge" and asserted that the growing concentration of economic power is deterring investment growth.
Congress general secretary Jairam Ramesh also alleged that they are now witnessing "politically-patronised" private investment itself crowding out broad-based private investment.
The lack of buoyancy in private corporate investment is India's most serious challenge. The tepidity is caused by a number of factors that include -
(i) stagnation in real wages that is affecting growth in consumption across the income spectrum;
(ii) a steep fall in domestic… pic.twitter.com/H34KFpbRsW
Mr. Ramesh also shared a media report on X, which said the Adani Group accounted for a third of all the private capital expenditure in India during the financial year that ended on March 31, 2026.
"The lack of buoyancy in private corporate investment is India's most serious challenge. The tepidity is caused by a number of factors that include stagnation in real wages that is affecting growth in consumption across the income spectrum; a steep fall in domestic savings rates aided by high inflation," Mr. Ramesh said.
He further said the tepidity in private corporate investment is also caused by an atmosphere of fear and intimidation caused by the "raid raj of powers, tax authorities and investigative agencies; lack of consistency, predictability, and transparency in key policies that influence investment decisions; and the ever-growing tide of Chinese imports which have destroyed the market for domestically manufactured goods".
Growing concentration of economic power is also deterring investment growth, he said.
"Ironically the best pointer to this is provided by the co-architect of the Modani empire. He has proudly proclaimed that his empire alone accounted for a whopping one-third of all private corporate investment in India in 2025-26," Mr. Ramesh said.
Economists have worried about public investment crowding out private investment, he said.
"We are now witnessing politically-patronised private investment itself crowding out broad-based private investment," Mr. Ramesh alleged.
Published - June 25, 2026 12:00 pm IST
Indian National Congress / politics / economy, business and finance / business (general)
Source: The Hindu - India News
