India’s economy deep in ‘Modi-made crisis’: Congress on rising gold loans

Congress criticizes Modi government for gold loan crisis, blaming economic mismanagement and distress lending impacting women disproportionately.

The Congress on Tuesday (March 4, 2025) flagged the issue of rise in gold loans and claimed that the Indian economy is “deep in a Modi-made crisis”.

Congress general secretary in-charge communications Jairam Ramesh cited the February RBI data and pointed out that gold loans had jumped a whopping 71.3%.

"India's economy is deep in a Modi-made crisis. Recall that by 2024, widespread and persistent economic stagnation had resulted in a 300% growth in gold loans in just 5 years. Gold loans crossed the ₹1 lakh crore mark for the first time ever," Mr. Ramesh said on X.

"The bad news for India's women now continues to pile up. In February 2025, RBI data showed that gold loans had jumped a whopping 71.3%," he said.

While bank credit in every other sector has slowed, from housing loans to car loans, distress lending such as gold loans is peaking, Mr. Ramesh said.

Not just that, a Cibil-NITI Aayog report showed that gold loans make up nearly 40% of all credit issued to women, and the number of women forced to put up their jewellery has grown by more than 22% in just five years, he said.

"The Modi government has once again demonstrated its complete and utter incompetence in managing the economy. India's women are paying the price," Mr. Ramesh said.