Bharatiya Janata Party (BJP) leader Amit Malviya on Tuesday sharply rebutted Congress communications chief Jairam Ramesh, calling his critique of the government's economic management “alarmist and misleading.” The exchange, centred on private investment trends, FDI flows, and banking health, marks one of the more data-heavy political confrontations on economic policy in recent weeks.

What Jairam Ramesh Said

Ramesh, posting on X, argued that Finance Minister Nirmala Sitharaman was consumed by the “3Fs” — fuel, fertilisers, and forex — while ignoring what he called the “all-important fourth F: falling rates of private investment that have been in evidence these past few years.” He also contended that net FDI flows had declined and that private corporate investment as a share of GDP stood at roughly half its pre-2014 peak.

Malviya's Counter: The Investment Data

Malviya pushed back by citing an analysis of nearly 1,200 companies from the CMIE Prowess database, which reportedly showed private sector investment rising 67 per cent year-on-year to ₹7.7 lakh crore in September 2025, up from ₹4.6 lakh crore a year earlier. Manufacturing accounted for nearly half of this capital expenditure, with services also contributing strongly. Capacity utilisation climbed to 75.6 per cent in Q3 FY26, new order books expanded 10.3 per cent year-on-year, and bank credit growth strengthened in the second half of FY26.

On the FDI question, Malviya said low net FDI did not automatically signal weak foreign investor confidence. “Gross FDI inflows in FY26 rose to around $94.5 billion, while net FDI increased sixfold compared to the previous fiscal year,” he said, calling Ramesh’s framing “a deliberate attempt to mislead.”

The Pre-2014 Benchmark Dispute

Malviya took particular issue with Ramesh’s use of the pre-2014 private investment peak as a reference point. He argued that the cycle was “heavily debt-fuelled and ended in stalled projects, over-leveraged corporates, stressed banks and the NPA crisis.” Using that peak as a benchmark “without mentioning the balance-sheet damage it created is dishonest economics,” he said.

Notably, this framing reflects a broader BJP counter-narrative that has been consistent since 2014: that the UPA-era investment boom was structurally unsound, and that the current cycle, while more modest, rests on cleaner foundations.

Banking Health and Corporate Profits

Malviya cited public sector bank data to argue the financial system was now capable of financing growth. According to him, public sector banks closed FY 2025-26 with gross NPAs at 1.93 per cent and net NPAs at 0.39 per cent — described as historically the lowest levels. Gross advances grew 15.7 per cent year-on-year to ₹127 lakh crore, with retail, agriculture, and MSME advances rising 18.1 per cent, 15.5 per cent, and 18.2 per cent respectively.

On corporate profitability, a sample of 837 listed companies showed Q4 FY26 adjusted net profits rising to ₹3.24 lakh crore, up from ₹2.81 lakh crore a year earlier, while revenue reached ₹28.65 lakh crore. Margins, Malviya said, hit their highest level in five years.

What Comes Next

The exchange underscores a deepening political contest over India’s economic narrative ahead of upcoming state elections. Congress is likely to press the private investment argument further, while the BJP will lean on banking and capex data as proof of a strengthening cycle. Independent economists and market analysts will be closely watched for third-party readings of the same datasets that both sides are now invoking.