Economy tanked under Modi-led govt: Kharge

Congress president Mallikarjun Kharge criticized PM Modi's government for the declining Indian economy, citing stock market losses and job cuts despite tax cuts.

Congress president Mallikarjun Kharge on Tuesday attacked the central government over the state of the Indian economy, claiming that it has “tanked” under Prime Minister Narendra Modi. He also criticised Union finance minister Nirmala Sitharaman’s recent statement that the economy is delivering “good returns,” terming her comments “ironic” .

Kharge also pointed to the depreciation of the rupee and its potential impact on the trade deficit. (ANI PHOTO)

Kharge took to X (formerly Twitter) to question Sitharaman’s optimism, citing significant losses in the stock market and declining investor confidence. “ ₹45 lakh Cr has been wiped out from the Indian stock markets so far in 2025. Nifty 50 firms have shown the worst quarterly profit growth in 5 years. Foreign Investors have sold over ₹1.56 lakh crore of stocks since October last year, including nearly ₹1 lakh crore in 2025 itself, which has led to wiping out the wealth of small & medium investors,” he said.

Sensex, the benchmark index of BSE has fallen 3% since January 1 and closed at 75,967.39 points on Tuesday.

In a post-Budget press briefing on Monday, Sitharaman addressed concerns over foreign institutional investor (FII) outflows from the equity market and stated that such exits were actually a sign of a strong economy. She explained that FIIs leave when they are in a position to book profits, asserting that the current investment environment in India is yielding good returns.

Kharge also pointed to the depreciation of the rupee and its potential impact on the trade deficit. The Indian currency has fallen 1.3% this year against the dollar and closed at ₹86.94 to the dollar on Tuesday. He further criticised the Modi government for foregoing nearly ₹10 lakh crore in corporate tax revenue over a decade, arguing that the decision was made with the expectation that companies would generate employment. “But 8 out 9 companies that have benefitted from the cut in Corporate taxes have reduced jobs.”

The Congress president also warned of a looming global tariff war that could negatively impact India’s economy. He criticised the state of the country’s manufacturing sector, calling it “drowning,” and described the Make in India and production-linked incentive (PLI) schemes as failures.

“A visionless, rudderless and policyless Modi Sarkar has tanked the Indian economy, ruining the lives of Indians!” he added.

HT tried reaching out to the BJP leaders for their response but was yet to get a comment till the time of going to print.