New Delhi [India], May 21 (ANI): Congress leader Jairam Ramesh on Thursday launched a sharp attack on the Centre over the state of the economy, alleging that the Prime Minister Narendra Modi government had mismanaged inflation, investment and supply chains, while taking a swipe at the PM over the recent 'Melody' toffee moment during his Italy visit.

In a detailed statement issued by Ramesh on behalf of the Congress Party on X, he wrote, 'The sentiment on the Indian economy has taken such a downturn that even the Modi Govt's professional cheerleaders have begun to give public expression to their concerns.'

He claimed that inflation forecasts were rising while growth projections were declining and alleged that Foreign Direct Investment (FDI) continued to shrink.

'FDI continues to shrink and supply chains have been so gravely mismanaged that the Prime Minister has now gone on record asking consumers to reduce their consumption,' he wrote.

The Congress leader said the party had been consistently raising concerns over what he described as a weak investment climate in the country.

According to Ramesh, economic growth could not be accelerated without a significant increase in private investment, which he claimed remained stagnant due to multiple factors.

He alleged that stagnant real wages had weakened consumer demand, creating little incentive for private companies to invest.

Ramesh also cited 'policy flip-flops, administrative orders, tax notices, raids and threats of raids by tax authorities and investigative agencies' as reasons behind what he described as an atmosphere of fear and uncertainty in the investment community.

Further attacking the Centre, he alleged that 'continued dumping of imports from China's industrial over-capacity' had damaged demand for local manufacturing goods.

He also accused the government of encouraging cronyism through 'government-enabled takeovers' and referred to 'Modani' as an example.

The Congress leader further criticised what he termed the government's 'Chanda Lo Dhandha Do' model, alleging that corporates had little incentive to independently invest and take risks.

'Corporate India's tax rates are at record lows, and its earnings are at record highs. Stock market valuations appear buoyant. Yet, investment momentum is conspicuously absent,' he further wrote.

Ramesh further claimed that companies were increasingly relocating or investing abroad and questioned how many investment announcements were translating into actual assets on the ground.

Taking a direct swipe at the Prime Minister, Ramesh added, 'The Prime Minister is busy distributing toffees and engaging in pious pleas to the public. The ground is slipping beneath the country's feet.'

'We need a radical reset in economic policymaking, but the Modi Government has run out of ideas - other than the usual self-glorification,' he added.

Taking a swipe at Chief Election Commissioner (CEC) Gyanesh Kumar, Ramesh concluded, 'The PM is managing elections through Gyanesh but urgently needs new Gyan on the economy,' he added.

https://x.com/Jairam_Ramesh/status/2057332231233036571

The remarks come after PM Modi's widely discussed interaction with Italian Prime Minister Giorgia Meloni during his Italy visit, where he gifted her a packet of 'Melody' toffees, sparking online reactions around the popular 'Melodi' trend.

PM Modi returned to Delhi on Thursday after concluding his five-nation visit to the UAE, the Netherlands, Sweden, Norway and Italy.

During the Italy visit, India and Italy elevated bilateral ties to a 'Special Strategic Partnership.' The two leaders discussed cooperation in sectors including trade, defence, science and technology, connectivity, education, energy and artificial intelligence.

Several Memorandums of Understanding (MoUs) were also signed during the visit in areas including defence, mobility, agriculture, connectivity and critical technologies.

The Prime Minister is also scheduled to chair a meeting of the Council of Ministers at Sewa Teerth in the national capital at 5 PM amid concerns over rising global fuel prices and energy security linked to the ongoing West Asia conflict, as per the sources. (ANI)