Raging inflation, stagnant wages forcing households into debt: Congress

The alarm bells are ringing for the Indian economy, but Prime Minister Narendra Modi has not heard them, the Congress said on April 9. The principal Opposition party’s statement was in response to a news report in The Hindu that quoted the findings of leading financial services firm Motilal Oswal on India’s growing household debt. Party general secretary Jairam Ramesh said the Congress’ ‘Nyay Patra’ is a direct response to the “failures” of the government and asserted that the “dus saal anyay kaal” ends on June 4. Under his leadership, India has witnessed record levels of unemployment, high inflation, declining real wages, widespread rural distress, and dramatic increases in inequality,” Mr. Ramesh said in a statement, referring to the report by the financial services firm. “Although 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,” he noted, adding, “far from saving money, Indian households are slowly sinking into debt.” Quoting the report, Mr. Ramesh said the “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.