New Delhi, May 26: Amit Malviya, a leader of the Bharatiya Janata Party (BJP), accused Congress MP Jairam Ramesh of using alarming and misleading arguments to criticize the government’s economic policy on Tuesday.
Ramesh had stated on the social media platform X that Union Finance Minister Nirmala Sitharaman is focusing on the “Three Fs”—Fuel, Fertilizers, and Forex—while neglecting the fourth crucial “F,” which is the falling rates of private investment, a trend evident over recent years.
In response, Malviya asserted, “Fuel, fertilizers, and foreign exchange are points of immediate external pressure arising from global instability that affects all nations. Fluctuations in crude oil prices, fertilizer costs, and foreign exchange are imported risks. A responsible government addresses these issues. Downplaying them shows how lightly Congress takes broader economic sensitivities.”
He presented data indicating that private investment in the Indian economy is on the rise, criticizing Ramesh for making misleading statements on this issue.
Malviya stated, “The argument regarding private investment is one-sided. Investment is driven by four factors—demand, profitability, availability of credit, and policy confidence. Current data on all these fronts indicates a strengthening foundation for the economy.”
He further noted that real private capital expenditure is evident, referencing an analysis of around 1,200 companies from the CIMERE database, which showed that private sector investment increased from ₹4.6 lakh crore last year to ₹7.7 lakh crore by September 2025, marking a year-on-year growth of 67%.
According to Malviya, nearly half of this capital expenditure came from the manufacturing sector, with a strong contribution from services as well. In the third quarter of the fiscal year 2026, capacity utilization rose to 75.6%, and new orders increased by 10.3% on an index basis, alongside a rise in bank loan growth in the second half of the fiscal year 2026.
Ramesh claimed that net Foreign Direct Investment (FDI) has declined and that private corporate investment as a percentage of GDP has fallen to half of its pre-2014 peak. Malviya labeled this as a deliberate attempt to mislead regarding FDI.
He explained, “A lower net FDI does not mean that foreign investors have lost confidence. Gross FDI inflows reached approximately $94.5 billion in the fiscal year 2025-26, while net FDI increased sixfold compared to the previous fiscal year.”
Malviya pointed out that the biggest flaw in comparisons is that the peak of private investment before 2014 was heavily debt-based, leading to stalled projects, over-leveraged corporates, pressured banks, and an NPA crisis.
He emphasized, “Failing to mention the balance sheet damage caused by using that peak as a standard is dishonest economics. Today, the banking system is robust enough to finance growth.”
He noted that public sector banks ended the fiscal year 2025-26 with a gross NPA of 1.93% and a net NPA of 0.39%, historically the lowest levels. Their gross advances grew by 15.7% to ₹127 lakh crore, with retail, agriculture, and MSME loans increasing by 18.1%, 15.5%, and 18.2%, respectively. This does not depict an economy struggling with a lack of credit.
Malviya stated, “In a sample of 837 listed companies, adjusted net profits for the fourth quarter of fiscal year 2025-26 rose to ₹3.24 lakh crore, up from ₹2.81 lakh crore a year earlier. Revenue increased to ₹28.65 lakh crore. Profit growth outpaced revenue growth, and margins reached a five-year high.”
He also clarified that investments by Indian companies abroad should not be viewed as “flight from India.” He remarked, “A strong Indian corporate sector will naturally acquire assets abroad, develop supply chains, and expand market access. This indicates the global expansion of Indian industries. The real question is whether companies are also investing domestically.”
He concluded, “Data on capital expenditure, bank loan growth, profit figures, and capacity utilization indicate that they are indeed investing.”
Malviya further stated, “India is keeping an eye on the Three Fs (Fuel, Fertilizer, and Forex), as careful management of external shocks is essential. Meanwhile, domestic investment cycles are supported by strong bank balance sheets, improved corporate profits, rising private capital expenditure, broad credit demand, and record gross FDI inflows.”
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S.A.K./V.C.
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