The Congress on Wednesday flagged major economic challenges that have affected consumption patterns and pointed to a "shrinking" urban middle class, asking when will Prime Minister Narendra Modi recognise this reality.
Congress general secretary in-charge communications Jairam Ramesh said that in the last few weeks, multiple leading lights from India Inc have flagged the tremendous slowdown in household private consumption, even in the previously red-hot FMCG sector.
"Now, a new report by the well-regarded Marcellus Investment Managers reveals three major economic challenges that have affected consumption patterns," he said.
Flagging the issue of deteriorating household balance sheets, Ramesh said according to the RBI's own data, net household savings as a percentage of GDP are at their lowest level in nearly 50 years.
Mounting unsecured loans have pushed net savings into the red, leaving families with less disposable income, he said.
He also pointed to a cyclical economic downtur