‘Consumption rising, but seeing stress’

Finance Ministry cites growth in personal loans as demand uptick marker; surge in gold loans reflects strain

The Finance Ministry asserted on Wednesday that consumption indicators pointed to a steady growth trajectory, with passenger vehicle sales returning to pre-pandemic levels in January and even two- and three-wheelers reporting month-on-month improvements in sales.

While the ministry cited a robust 14.3% growth in personal loans in December to posit a consumption demand uptick, it noted that an increase in loans against gold within this surge ‘may indicate a strain on individual incomes and cash flows’, adding that currency with the public had also increased.

“Private consumption will grow cautiously as precautionary demand for money will rise at every hint of a new infection,” the ministry said. “Private investment, helped by the complementary support of public investment in infrastructure, will continue to gain traction from the ethos of Atmanirbhar Bharat,” it added.