By P Mohan Chandran
Have you ever found yourself staring at your brand-new iPhone, bought on seemingly manageable EMIs, and wondered, "What have I done?" If you haven't, it might be high time to do so, for beneath the veneer of contemporary Indian affluence lies a quagmire so deep, it has engulfed our household savings to a 50-year low. Yes, you read it right—our nation is not saving; it's spending. But at what monumental cost?
A Maelstrom of Debt
Last year, our per capita growth clocked in at an impressive 8.5%. Now juxtapose that with per capita debt growth, a staggering figure at 17.9%. Net household savings plummeted by 55%. A glance at these statistics paints a dire picture. But why? One may argue that the growth in gross household savings would debunk this myth. Ah, there's the rub. Our net savings, meticulously calculated post-deducting our ever-burgeoning debt, are not just dipping; they are skydiving.
The Tier-2 and Tier-3 Chronicles
Once the bastions of frugality and financial prudence, tier-2 and tier-3 cities have witnessed an astronomical 140% increase in EMIs. Even our pastoral villages and smaller cities haven't been immune, with credit soaring by approximately 35%. What changed?
The EMI Enigma and the Fallacy of Consumerism
EMIs, or Equated Monthly Installments, were supposed to democratize luxury. Your dream iPhone now available at a paltry ₹3,000 a month. What could go wrong? As it turns out, almost everything. A paradigm shift has occurred in consumer behavior, predominantly among the youth. The allure of instant gratification and social ostentation has created a vortex of splurge buying. But the apple of temptation has a worm, and that worm is debt.
Revenge Shopping: The Comfort That Costs
We've been cooped up for two years, courtesy of a pandemic. The pent-up desire found its outlet in "revenge shopping." Whether it's the tactile feel of a shopping bag or the ephemeral joy of swiping a credit card, retail therapy became our solace. And like Icarus flying too close to the sun, we failed to notice we were burning holes in our pockets, pushing us further into the debt abyss.
Concluding Probes
So, what's the endgame? A society deep in debt, yet rich in material possessions? Is this the modern Indian paradox? EMIs, consumerism, revenge shopping, and the delusion of 'easy money' have coalesced into a tempest, decimating our household savings. Are we living the dream or killing the future? The real question now looms: Is it time for us to wake up before this mirage turns into an inescapable quagmire?
After all, will the iPhone in your hand make up for the chains around your future?
Do you agree that EMI culture lands you in a permanent debt trap?
A. Yes, we become slaves for life with EMIs.
B. No, EMIs help us elevate our standard of living.
© 2023. P Mohan Chandran. All Rights Reserved.
25092023
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