He also cited data showing that 21,300 dollar millionaires left India between 2022 and 2025.
Ramesh attributed the current economic challenges to three key factors:
1. Complicated GST Structure: Ramesh criticized the GST regime, which he said includes over 100 different tax rates, making it overly complex. He cited former Chief Economic Advisor Arvind Subramanian, who described GST as anything but the “Good and Simple Tax” it was meant to be. GST evasion has reportedly soared to ₹2.01 lakh crore in FY24, nearly double the ₹1.01 lakh crore in FY23.
2. Unabated Chinese Imports: Despite government claims to the contrary, Ramesh alleged that Chinese imports have continued to surge, resulting in a record trade deficit of $85 billion in 2023-24. He argued that this has hurt Indian manufacturing, particularly in labor-intensive sectors.
3. Weak Consumption and Stagnant Wages: Ramesh pointed to stagnant wages and weak consumption growth as major concerns. He highlighted Ministry of Agriculture data showing that real wages for agricultural labor grew by 6.8% annually under the UPA but declined by 1.3% annually under the Modi government. He further cited the Periodic Labour Force Survey, which found average real earnings stagnated across all types of workers between 2017 and 2022.
“These retrograde policies have broken the confidence of investors in India,” Ramesh said. He called on the government to address these issues in the upcoming budget, emphasizing the need to eliminate “raid raj and tax terrorism,” protect Indian manufacturing jobs, and increase wages and purchasing power to stimulate private investment.
In a post on X (formerly Twitter), Ramesh stated, “The 2025/26 Union Budget will be presented thirteen days from today. Here is our statement on how the Modi government has converted the ease of doing business to unease in doing business – thereby depressing private investment sentiment. Radical action is necessary to fix the damage.”
This post was originally published on here
