Modi government refusing to recognise challenge of weak consumer demand growth: Ramesh

Congress MP Jairam Ramesh
| Photo Credit: PTI

The Congress on August 6 said India Inc is dealing with the reality of weak consumer demand growth and claimed that the Modi government is refusing to recognise this most fundamental economic challenge.

Congress general secretary in-charge communications Jairam Ramesh shared on X a media report which claimed that India Inc has reported a muted start to the financial year 2024-25, with a decline in net earnings and a modest single-digit uptick in revenues.

In his post, Mr. Ramesh said, “The spike in India Inc’s corporate profits over the last few years was not built on robust revenue growth from surging sales volume, but for a variety of less exciting reasons – Decreased costs due to COVID-era automation; Increasing oligopolisation, enabling market leaders to demand higher prices; Corporate tax cuts, Production-linked Incentives (PLIs – which are nothing but cash support), and other financial bonanzas offered by the Government.” The temporary boost to corporate profits given by these tailwinds is now receding, and India Inc is dealing with the reality of weak consumer demand growth, he said.

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“This is the most fundamental economic challenge that the non-biological PM’s Government is refusing to recognize and grapple with,” Mr. Ramesh said.