On Tuesday, the Congress party criticized the Modi government for failing to address the critical issue of weak consumer demand growth. Congress general secretary in-charge communications, Jairam Ramesh, highlighted a media report indicating that India Inc is struggling with subdued performance at the start of the financial year 2024-25. The report points to a decline in net earnings and only a modest increase in revenues. Ramesh accused the government of not acknowledging this fundamental economic challenge and instead focusing on short-term measures that have not resulted in sustainable growth.
BulletsIn
- Congress claims the Modi government is ignoring weak consumer demand growth.
- India Inc reported a muted start to the financial year 2024-25.
- There has been a decline in net earnings and only a modest single-digit rise in revenues.
- Jairam Ramesh shared a media report on X highlighting these issues.
- Ramesh criticized the previous spike in corporate profits as not being driven by strong sales growth.
- Instead, profits were boosted by decreased costs due to COVID-era automation.
- Increased oligopolisation allowed market leaders to charge higher prices.
- Corporate tax cuts, Production-linked Incentives (PLIs), and other financial benefits were also contributing factors.
- These temporary boosts to profits are now fading, revealing weak consumer demand.
- Ramesh accused the Modi government of not addressing this fundamental economic issue.
