Congress welcomed the peace agreement between the United States and Iran, but warned that “this does not mean that the structural problems facing the economy will be overcome soon.” The party also said that Pakistan “now appears to have gained new regional and global influence” and that India needs a greater balance of power.
“Pakistan, which India successfully isolated after coordinating the terrorist attacks in Mumbai in November 2008, now appears to have gained new regional and global influence. This, coupled with China’s deep integration into Pakistan’s strategic apparatus, poses a massive geopolitical challenge to India’s foreign policy. It is a stretch to expect Mr. Modi to rethink his blind devotion and unconditional support for Israel. But the humanitarian considerations and commitments are long-term,” Congress leader Jairam Ramesh said in a post on X. “National interest requires greater balance than Mr. Modi has shown.”
“The news that the United States and Iran will sign an agreement on June 19 in Geneva to cease hostilities in West Asia is welcome, although the full details have not yet been officially announced,” Ramesh said. “There is global hope that the two countries (as well as Israel) will adhere to the agreement – although it is of a temporary nature – and that the agreement will lead to more sustainable normalization.”
He stressed that reopening the Strait of Hormuz without restrictions would certainly bring great relief to India, but added that concerns over structural issues clearly predate the current war in West Asia.
“The rupee has been under significant pressure for more than a year and the gap between dollar supply and demand has been widening. Private investment rates – the most important factor for GDP growth – have been tepid for many years,” Ramesh added.
The Congress argued that these are the results of “slowing growth in demand” linked to “the stagnation in real wages over the past decade, the failure of the Modi government to check dumping of imports from China resulting in a record trade deficit and compromised growth of employment-generating micro, small and medium enterprises in particular; and the spoiling of the overall investment climate due to unchecked powers given to tax authorities and investigative agencies.”
