Mounting unsecured loans has reduced net savings, leaving families with less disposable income, Jairam Ramesh said
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The Congress on Wednesday highlighted serious economic issues that have impacted consumption patterns, pointing to a "shrinking" urban middle class and questioning when Prime Minister Narendra Modi will acknowledge this reality, PTI reported.
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Congress general secretary in-charge of communications Jairam Ramesh said that in the past few weeks, many leading lights from India Inc have highlighted the tremendous slowdown in household private consumption, even in the previously red-hot FMCG sector, PTI reported.
"Now, a new report by the well-regarded Marcellus Investment Managers reveals three major economic challenges that have affected consumption patterns," he said.
Ramesh highlighted the issue of worsening household balance sheets, stating that according to the RBI's figures, net household savings as a percentage of GDP are at their lowest level in almost 50 years.
Mounting unsecured loans has reduced net savings, leaving families with less disposable income, he said, PTI cited.
He also mentioned a cyclical economic slowdown and that India's post-Covid rebound had burned out. Corporate earnings in Q2 FY25 fell the most in two decades, with the exception of disasters like the 2008 financial meltdown, according to Ramesh.
As per PTI, referring to technological disruptions, Ramesh stated that routine and repetitive jobs that were previously the foundation of middle-class employment are increasingly being displaced by cost-cutting strategies such as automation and outsourcing.
"The urban middle class has been disproportionately affected and is 'shrinking.' When will the PM recognise this reality?" the Congress leader said.
The Congress has criticized the government's handling of the economy, voicing concerns about "increasing" unemployment and price increases.
INDIA bloc calls for a Joint Parliament Committee investigation on 'Modani' scam, says Congress MP Jairam Ramesh
Congress MP and General Secretary in-charge Communications Jairam Ramesh said on Monday that the "Modani" issue rocked both houses of Parliament, reported the ANI.
"The Modani issue rocked both the Lok Sabha and Rajya Sabha today. INDIA parties called for a Joint Parliamentary Committee investigation into the Modani scam - the case for which has been reinforced by the recent indictments of Adani's bribery and suppression of information from Indian and American regulators," said Jairam Ramesh in a post on X (formerly Twitter).
The Modani issue rocked both the Lok Sabha and Rajya Sabha today. INDIA parties called for a Joint Parliamentary Committee investigation into the Modani scam - the case for which has been reinforced by the recent indictments of Adani's bribery and supression of information from…
— Jairam Ramesh (@Jairam_Ramesh) November 25, 2024
Earlier on Monday, INDIA bloc leaders held a meeting before the commencement of the parliament session. The leaders demanded to hold discussions on the Adani indictment, stated ANI.
As the Parliament session begins, the first step the government should take is to have a detailed discussion on the Adani saga which has the potential to tarnish India’s image on the global stage.
(With inputs from PTI and ANI)
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