New Delhi: The Congress on Wednesday raised concerns over declining household financial savings, rising debt and inflation, accusing the Narendra Modi government of overlooking the financial pressures faced by middle-class and low-income families despite claims of strong economic growth.
The opposition party demanded measures to generate employment, contain inflation and address widening economic inequality, arguing that headline GDP figures alone cannot adequately reflect the financial well-being of ordinary households.
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Congress general secretary (communications) Jairam Ramesh cited a media report suggesting that India's net household financial savings declined by nearly 4 percent to Rs 21.69 lakh crore in FY26 from Rs 22.57 lakh crore in the previous financial year.
According to the report shared by Ramesh, although households increased their investments in bank deposits, mutual funds and other financial assets, their fresh borrowings grew at a faster pace, resulting in lower net financial savings.
Ramesh alleged that rising household debt, stagnant wages and limited employment opportunities were putting increasing pressure on family finances.
He claimed that many households were being forced to rely on borrowings and accumulated savings to meet everyday expenses, even as corporate profits and wealth accumulation among affluent sections continued to grow.
The Congress leader also accused the government of manipulating economic data to understate inflation, an allegation that was not independently substantiated in the material cited.
"The younger generation is bearing the brunt of a declining economy and dwindling employment opportunities. Data indicates that companies are hiring less, and people are even losing long-held jobs," he said.
Ramesh argued that GDP growth should not be treated as the sole measure of economic progress, particularly when its benefits are unevenly distributed.
"Modi-ji, Growing economic inequality is one of the nation's most pressing concerns, yet you are fuelling it. GDP figures never reveal who is actually reaping the benefits of growth or whether the lives of ordinary citizens are truly improving," he said.
Congress president Mallikarjun Kharge also criticised the government, alleging that rising prices were eroding household incomes during the festive season.
In a Hindi post on X, Kharge cited figures claiming that food inflation had increased from 2.13 percent to 7.74 percent, household debt had risen 36.7 percent, and household financial savings had fallen 4 percent.
He also referred to retail inflation of 5.54 percent and wholesale inflation of 11.39 percent. The periods and statistical bases of these figures were not specified in the statement, making direct comparisons difficult.
Kharge invoked the BJP's pre-2014 campaign against inflation and accused the ruling party of failing to deliver on its promises of economic improvement.
The Congress president further alleged that the government was preoccupied with political controversies while ordinary citizens struggled with the rising cost of living.
Ramesh called on the government to acknowledge what he described as growing economic distress and take corrective measures.
"We demand that the government acknowledge the reality of this economic distress, expand employment opportunities, and take concrete steps to rein in inflation," Ramesh said.
He maintained that economic development could not be considered inclusive unless improvements in national income translated into better living standards, stronger purchasing power and greater financial security for households.
"Claims of economic development are meaningful only when their benefits reach the common man; otherwise, these statistics tell a story not of progress, but of a widening economic divide," he said.
The reported decline in net household financial savings raises questions about the relationship between household borrowing, income growth and financial resilience.
However, a fall in net financial savings does not necessarily establish that households are borrowing primarily to meet daily expenses. Borrowing for housing, education, investment and other purposes can also influence the figures.
Similarly, changes in financial savings alone do not capture the complete household savings picture, which also includes investments in physical assets.
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The Congress has repeatedly accused the Centre of pursuing policies that disproportionately burden ordinary consumers, while the government has rejected the opposition's broader criticism and pointed to India's GDP growth as evidence of economic strength.
The latest political exchange highlights a wider economic debate: whether India's growth is translating into higher real incomes, sustainable household finances and improved living standards across income groups.
While the Congress has linked falling net financial savings to mounting economic distress, establishing the scale and causes of that distress requires a closer examination of household debt, wage growth, inflation-adjusted incomes and employment trends.
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