The Congress on Monday launched a sharp attack on the Narendra Modi government’s foreign policy, arguing that Pakistan appears to have regained regional and global influence and warning that its growing strategic alignment with China poses a serious geopolitical challenge for India.

Reacting to reports that the United States and Iran are set to sign a peace agreement in Geneva on 19 June, Congress general secretary in charge of communications Jairam Ramesh welcomed the development but used the occasion to question both the government's economic management and its foreign policy approach.

"The news that the US and Iran will be signing an agreement to halt hostilities in West Asia is to be welcomed," Ramesh said in a post on X, adding that there was "universal hope" that all parties, including Israel, would abide by the accord and work towards a more permanent peace.

While acknowledging that the unrestricted reopening of the Strait of Hormuz would provide significant relief to India by easing concerns over energy supplies, Ramesh argued that the country's economic challenges run much deeper.

"The structural problems facing the Indian economy will not disappear overnight," he said, pointing to sustained pressure on the rupee, a widening gap between the demand and supply of dollars, and sluggish private investment.

According to the Congress leader, weak consumer demand, stagnant real wages, rising imports from China and an uncertain investment climate have contributed to the economic slowdown.