Jairam Ramesh, AICC General Secretary. File
| Photo Credit: The Hindu
The Congress on Thursday (June 4, 2026) alleged that the Narendra Modi-led Union government was in “panic mode” over the state of the economy, referring to reports that it was considering the removal of the 12.5% tax on long-term capital gains to arrest the withdrawal of foreign portfolio investors (FPIs) from the Indian markets.The party also raised questions over Life Insurance Corporation of India’s (LIC) investment in jewellery and gold refining company Rajesh Exports, which is facing regulatory action by the Securities and Exchange Board of India (SEBI).Congress general secretary (communications) Jairam Ramesh cited media reports claiming that the Centre was considering an ordinance to amend the Income Tax Act and remove the 12.5% long-term capital gains tax (LTCG) on investments made by FPIs in government securities.‘Under seige’“The Modi government is clearly in panic mode and is under siege from within its ecosystem on the current economic situation,” Mr. Ramesh said in a post on X, noting that the tax rate had been fixed in the July 2024 Union Budget.Arguing that the country’s economic challenges ran deeper, the Congress communications chief said the “real problem” was the weakness of private corporate investment.“Those who can and must invest in India are either investing abroad or postponing investments at home,” Mr. Ramesh said, adding that corporate profits were at record highs even as private investment as a share of GDP had declined.Structural problemsThe Congress leader contended that temporary policy measures could not substitute for addressing structural issues such as stagnant real wages, widening income and wealth inequalities, concentration of economic power and what he described as an atmosphere of intimidation created by the misuse of investigative agencies. He also blamed rising imports from China for aggravating domestic investment concerns.Separately, he questioned LIC’s holding of around 10.8% in Rajesh Exports after SEBI issued an interim order alleging large-scale misrepresentation of financial statements and diversion of funds by the company.Describing the alleged irregularities as a “gigantic scam”, Mr. Ramesh said the market regulator had pointed to revenue misstatements spanning five years that could amount to as much as ₹15 lakh crore.“How could LIC have missed such a huge fraud taking place in a company in which it has a substantial stake?” he asked, adding that the investment raised questions about whether the acquisition had been influenced by “instructions from the ruling ecosystem”.On Wednesday, SEBI barred the company’s promoter and chief executive officer, Rajesh Mehta, from dealing in the firm’s securities pending further orders, citing prima facie evidence of large-scale financial irregularities and inadequate cooperation with the investigation. Published - June 04, 2026 01:09 pm IST
