Alarm bells ringing in economy, households slowly sinking into debt: Congress slams govt
Congress on Tuesday claimed stagnant wages and high inflation have forced households to take loans just to get by and are slowly sinking into debt. Congress general secretary Jairam Ramesh also stressed that the Congress' 'Nyay Patra' is a direct response to the «failures» of the government and said «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 said in a statement.
He said the latest report from a leading financial services company shows the devastating impact that Modi's 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 said, referring to the report that has appeared in the Business Standard.
The report states that this «dramatic» fall in savings is due to weak income growth, which explains why both private consumption and household investment growth have remained markedly subdued in 2023-24, Ramesh said.
«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
