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Congress Flags Rising Debt as Household Savings Hit Three-Year Low

Congress general secretary Jairam Ramesh warns that record debt levels reflect the Modi government's failure to deliver promised economic relief.

Overview

  • A CareEdge Ratings report shows household savings fell to 18.1 percent of GDP in FY24, marking the third consecutive annual decline.
  • Gross domestic savings declined to 30.7 percent of GDP in FY24 from 32.2 percent in FY15, according to the same report.
  • Jairam Ramesh said falling incomes and rising prices have forced households to withdraw savings or resort to borrowing.
  • Ramesh accused the Modi government of indifference to the economic distress facing common people.
  • The Congress has also highlighted rising living costs, slowing private investment and stagnant wages as compounding pressures on households.