New Delhi [India], May 9 : Congress General Secretary Jairam Ramesh, linked a drop in savings to Dadabhai Naoroji's "Drain Theory" of the British Raj. Jairam Ramesh charged th Modi government with allowing the drain of wealth from "Bharat ka Parivar" to "Modi ka Pariwar".
In a post on X Ramesh alleged "150 years ago Dadabhai Naorji's "Drain Theory" explained how the wealth of India's people was being taken away and sent to England. Since 2014 we have seen a similar drain of wealth from Bharat Ke Parivaar to Modi Ka Parivaar. This is the intentional effect of the Prime Minister's 'hum do humare do' policy of favouring his cronies."
https://twitter.com/Jairam_Ramesh/status/1788441544082530495
The National account statistics data released on May 7th, show a significant drop in India's household savings over the last few years. India's net household savings have decreased by Rs 9 lakh crore in the last three years. Meanwhile, loans to households have doubled to Rs 14 lakh crore from Rs 7 lakh crore.
Jairam Ramesh further said, "In nominal price terms, the net household savings are at their lowest in five years. But the reality is that the real household savings are at their lowest since 2014 once we adjust for inflation. This means that for the entirety of the Modi Sarkar's Anyay Kaal, real household savings have grown at just 1.1 per cent per year."
However, on Wednesday, Chief Economic Advisor V Anantha Nageswaran, while speaking at an NCEAR summit, said, "Household net financial savings flows were lower in FY23 and there were some concerns around that, which says households are saving less. But, in reality, it was a portfolio shift where the savings are going into real assets".
But in his post on X, Jairam Charges the Modi government's economic mismanagement, incompetence and anti-people policies for a fall in household savings and people falling into a debt trap.
According to Ramesh's statement, "In September 2023, the RBI bulletin revealed that India's net financial savings were just 5.1 per cent of GDP, the lowest in 47 years. By December 2023, according to a Motilal Oswal research report in April 2024, the savings rate had plummeted further to only 5 per cent of GDP, marking the lowest point in fifty years."
He highlighted further, additionally, household debt has surged to 40 per cent of GDP, reaching an all-time high. Ramesh blamed the BJP government for exacerbating economic woes, leading to a surge in gold loans, which have surpassed Rs. 1 lakh crore for the first time in India's history, according to RBI data.
"Any economic growth since 2014 seems to have exclusively benefited the Prime Minister's crony industrialist friends", claimed Jairam Ramesh in his statement.
He stated, "Currently, 21 billionaires possess more wealth than the poorest 70 crore Indians combined. Adani's wealth has soared tenfold since 2014 to USD 80 billion, with control over India's airports, ports, factories, and other public resources."
Ramesh added, "Presently, the richest 1 per cent own 40 per cent of India's wealth, surpassing levels seen during British colonial times and ranking among the world's worst disparities."
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