Congress leader Jairam Ramesh criticized Prime Minister Narendra Modi on Thursday, alleging that his government has earned “the dubious distinction of being the only government to steal mangalsutras from women.” His comments came amid reports of a significant surge in non-performing assets (NPAs) related to gold loans, reflecting rising financial stress among Indian families.
Rising Gold Loan NPAs
Ramesh highlighted alarming data on gold loan NPAs, noting a 30% increase in defaults within just three months:
- Outstanding gold loan NPAs rose from Rs. 5,149 crore in March 2024 to Rs. 6,696 crore in June 2024.
- These figures pertain only to the formal sector, leaving out potentially vast numbers of families borrowing from the informal sector.
Ramesh also emphasized the devastating consequences of such defaults, where families often lose their gold assets, typically women’s jewelry, including mangalsutras, which hold immense cultural and emotional significance.
Congress Criticism
Ramesh linked the surge in gold loan NPAs to what he termed the Modi government’s:
- Cronyism: Favoring big businesses while ignoring common citizens.
- Erratic policymaking: Creating economic uncertainty and distress.
- Warped priorities: Focusing on divisive rhetoric rather than addressing the economic slowdown and rising indebtedness.
He reiterated Congress’s earlier concerns about the growing reliance on gold loans during the BJP’s tenure, with families reportedly borrowing a staggering Rs. 3 lakh crore in gold loans.
PM Modi’s Election Jibe
Ramesh’s comments also referenced PM Modi’s 2019 election campaign rhetoric, where the Prime Minister accused Congress of proposing policies to “snatch mangalsutras” and redistribute wealth. Modi’s remarks at the time targeted Congress’s alleged inclination to prioritize certain communities and redistribute resources unfairly.
In his election rally in Banswara, Rajasthan, Modi had remarked:
“Their mangalsutra is not just about gold; it represents dreams and life. Congress talks of snatching it to redistribute wealth. Who will they give it to—those with more children, infiltrators?”
Political Reactions
- Congress’s Counterattack: Ramesh called the BJP’s economic policies exploitative, accusing it of pushing families into financial distress while failing to create a robust economic safety net.
- Broader Implications: The rising gold loan NPAs reflect broader concerns about weakening household finances, reduced purchasing power, and the economic slowdown in India.
This war of words underscores the deepening political divide over economic governance, as both parties gear up for the upcoming elections.