Congress party on Thursday, June 4, 2026,slammed Narendra Modi-led government,accusing it of economic "panic mode." They pointed to reports suggesting Centre might ditch 12.5% long-term capital gains tax to stop foreign investors from pulling out of Indian markets.
Jairam Ramesh, Congress general secretary for communications, cited those reports,claiming government may use an ordinance to tweak Income Tax Act. The move would specifically target 12.5% LTCG tax on FPI investments in government securities,a rate set in July 2024 budget.
Mr. Ramesh posted on X that "Modi government is clearly in panic mode,under siege from within its ecosystem on current economic situation." He argued economic woes ran deeper than FPI outflows. "Real problem," he said,is weak private corporate investment .
Even with record corporate profits, private investment's share of GDP is down, Mr. Ramesh noted. Those who can invest in India are sending money abroad or stalling domestic projects . He argued temporary policy tweaks won't fix structural issues .
Structural problems,he said, include stagnant wages, growing inequality, and concentrated economic power. And an "atmosphere of intimidation" from alleged misuse of investigative agencies. Rising imports from China further cloud domestic investment scene,he added.
Separately,Mr. Ramesh questioned why Life Insurance Corporation of India (LIC) holds so much in Rajesh Exports,a jewellery and gold refining company. LIC owns around 10.8% of firm, now facing regulatory heat from SEBI.
SEBI issued interim order alleging massive financial misrepresentation by Rajesh Exports. Regulator found revenue misstatements over five years, possibly up to ₹15 lakh crore. Mr. Ramesh called it "gigantic scam."
"How could LIC miss such a big fraud in a company where it has major stake?" he asked. The investment,he implied,might have been steered by "instructions from ruling ecosystem."
On Wednesday, SEBI barred Rajesh Mehta,company's promoter and CEO, from trading Rajesh Exports' securities. They cited prima facie evidence of financial wrongdoing and lack of cooperation with probe, pending further orders.
