Recession, poverty & pocket-bankruptcy, essence of economy you run: Kharge to PM

Kharge alleged that with 75% of people buying two-wheelers on loan so that they can repay it slowly, the financial strain has led to a sharp increase in outstanding loans

Congress President Mallikarjun Kharge on Wednesday questioned Prime Minister Narendra Modi on the worsening economic condition of the country.

Kharge alleged the worsening condition of the middle class, particularly those relying on vehicle loans. (Mallikarjun Kharge | Official X account)

“Recession, poverty and pocket-bankruptcy - this is the essence of the economy you run”, Kharge wrote on his official X (formerly Twitter) account in a post written in Hindi.

Citing the Reserve Bank of India’s (RBI) February report about gold loans grew by 71.3% in a year, making up 38% of all loans taken by women in 2024, Kharge said women are forced to mortgage their jewellery due to rising inflation.

“First you made the women’s Stridhan disappear by implementing demonetization, now due to inflation and falling household savings, they are forced to mortgage their most valuable thing - their jewelry,” Kharge said.

Further, Kharge alleged the worsening condition of the middle class, particularly those relying on vehicle loans.

“You have worsened the condition of the economy to such an extent that our middle-class families who bought two-wheelers are now unable to repay their loans”, he said.

He cited data showing that two-wheeler financers are reducing loan disbursal for the first time since 2019 due to rising defaults.

Kharge alleged that with 75% of people buying two-wheelers on loan so that they can repay it slowly, the financial strain has led to a sharp increase in outstanding loans.

“... The loan outstanding till September 2024 is about ₹2 lakh crore, which has increased by ₹40,000 crore in a year. Two-wheeler sales have declined by 6% in February 2025”, he wrote.