Household Indebtedness: A Crisis Ignored

The Congress highlights a household indebtedness crisis in India, attributing it to stagnant wages and a growing wealth gap. Leaders accuse the government of ignoring the issue and emphasize that personal loans are overtaking industry loans, with less savings and reduced private investments exacerbating the situation.

The Congress has sounded an alarm over the growing crisis of household indebtedness in India, blaming stagnant real wages as the core issue. Congress President Mallikarjun Kharge criticized the government for not recognizing the deepening crisis affecting nearly a hundred crore Indians.

Kharge asserted that Prime Minister Narendra Modi's policies have emptied the pockets of ordinary citizens while benefiting a select few billionaires. He warned of potential global tariff wars and referred to the Union budget as a 'damp squib'.

Using the Indus Valley Annual Report 2025 as a basis, Congress leaders highlighted an increasing economic divide and emphasized that consumer loans now dominate private consumption expenditure. The falling household savings rate and reduced private investments are compounding the country's economic challenges.

(With inputs from agencies.)