NEW DELHI: Asserting that “alarm bells” are ringing within the Indian economic system, the Congress on Tuesday claimed stagnant wages and excessive inflation have pressured households to take loans simply to get by and are slowly sinking into debt. Congress common secretary Jairam Ramesh additionally burdened that the Congress’ ‘Nyay Patra’ is a direct response to the “failures” of the federal government and stated “dus saal anyay kaal” ends on June 4.
“All the alarm bells are ringing in the Indian economy, only Mr. Modi does not seem to hear them. Under his leadership, India has witnessed record levels of unemployment, high inflation, declining real wages, widespread rural distress, and dramatic increases in inequality,” Ramesh stated in an announcement. He stated the newest report from a number one monetary companies firm exhibits the devastating impression that Modi’s insurance policies have had on Indian households.
“According to the report, household debt levels reached an all-time high of 40% of Gross Domestic Product (GDP) by December 2023. Furthermore, at 5% of GDP, net financial savings have also dropped to their lowest level in 47 years!” he stated, referring to the report by monetary companies agency Motilal Oswal.
The report states that this “dramatic” fall in financial savings is because of weak earnings progress, which explains why each personal consumption and family funding progress have remained markedly subdued in 2023-24, Ramesh stated. “The authors make sure to point out that the ‘dismal’ savings rate is ‘not an anomaly’, and that net financial savings have remained at 5% of GDP for the first nine months of 2023-24. Reduced savings means less capital available for business and government investments, and increased reliance on volatile foreign capital,” he stated.
The report additionally confirms {that a} spike in unsecured private loans is accountable for top ranges of family debt, not house loans or car loans because the Finance Ministry would have us consider, he stated. “The share of housing in personal loans is actually below 50% for the first time in 5 years, and only high-end automobiles are doing well, while mass market cars and 2-wheeler sales have slumped,” the Congress chief argued.
“December also saw a worrying surge in gold loans – given the sentimental value that households place on gold assets such as jewelry, these loans are only taken as a last resort. Although the Modi Sarkar would be loath to admit it, the fact is that stagnant wages and high inflation have forced households to take loans just to get by,” Ramesh stated.
The finance ministry can spin this all they need however the reality is there for everybody to see – removed from saving cash, Indian households are slowly sinking into debt, he claimed. “The findings of this report add to the laundry list of the Modi government’s economic failures: Near-zero growth in employment – just 0.01% jobs added between 2012 and 2019, while 70-80 lakh youths join the labour force every year. Real wages of regular workers have declined between 2012 and 2022. Due to high inflation, workers can now afford less than they could ten years ago,” he stated.
Ramesh stated MGNREGA person-days elevated from 265 crore in FY2022-23 to 305 crore in FY 2023-24, indicating widespread rural misery. In a submit on X, Ramesh stated, “Modi ka parivar chhorho, desh ke parivaron ka kya? (Leave aside Modi’s family, what about the families of the country?).” The seven-phase Lok Sabha polls will start on April 19 and finish on June 1. The outcomes might be declared on June 4.
