100 crore Indians can't buy non-essential items: Indus Valley Report exposes ‘Modinomics’

India’s economic model under the Modi government is crumbling, as exposed by the findings of the Indus Valley Annual Report 2025, leading to criticism from the country's main Opposition Congress party.

The Indus Valley Annual Report is released by venture capital firm Blume Ventures.

While household consumption — the backbone of any thriving economy — continues to dwindle at an alarming rate, only 10 per cent of Indian households belong to the consuming class.

The report lays bare the stark reality of 'Modinomics'. Only a minuscule fraction of Indians can afford a decent standard of living, while the rest struggle with stagnation and declining purchasing power.

Key findings of the report:

• A mere 10 per cent of Indian households, classified as ‘India 1’, belong to the consuming class

• Within this, only 3 per cent of households qualify as ‘super consumers’

• India’s per capita consumption expenditure stands at a dismal $1,493, less than one-third of China’s

• India’s consumption of key lifestyle goods remains worryingly low: the country accounted for just 7 per cent of global air conditioner sales, while China dominated with 55 per cent

• A vast underclass — 205 million households, or 1 billion people — have virtually no income to spend on discretionary goods

• The so-called ‘aspirant class,’ comprising 70 million households, has limited purchasing capacity and cannot drive economic growth

Instead of broad-based growth, India’s economy is becoming increasingly exclusive. Key economic indicators like air passenger traffic and two-wheeler sales show stagnation, signalling that the consuming class is not expanding, according to the report.

Rather than creating a system where more Indians can climb the economic ladder, Modi’s policies have ensured that the benefits of growth are hoarded by a privileged few.

This concentration of wealth is evident in the automobile sector: while the proportion of SUVs in car sales skyrocketed from 23 per cent in FY19 to 50 per cent in FY24, signalling rising affluence among the elite, mass-market two-wheeler sales — a more accurate indicator of middle-class prosperity — have remained stagnant, the Congress has pointed out.

The party has also reacted strongly to the other revelations in the report, holding the Modi government squarely responsible for the dismal state of the economy.

Congress MP and general-secretary (communications) leader Jairam Ramesh minced no words, stating: "Nearly every source of data in recent years has confirmed the same reality: that India is increasingly unequal, and that India’s growth is coming only from its richest. The majority of Indians are unable to afford anything beyond the barest necessities. They reflect in the Union Government’s vision only as mere labharthis —beneficiaries of schemes — rather than rights-bearing, empowered economic agents."

Ramesh further emphasised that reversing this downward spiral requires a complete shift in policymaking — from cronyism to bottom-up empowerment. He called for a hike in MGNREGA wages, ensuring that rural incomes rise above inflation and create genuine economic momentum.

Political watchers say with soaring debt, plummeting consumption, and increasing inequality, India’s economic trajectory is far from the rosy picture painted by the ruling party’s propaganda.

Pertinently, Lok Sabha Leader of Opposition Rahul Gandhi and the Congress have repeatedly criticised the Modi government’s economic policies, warning of the dangers of growing inequality and stagnation. Earlier this month, Gandhi said: "Amid global uncertainty, solving our economic crisis demanded a paradigm shift. But this government is bankrupt of ideas".

The Congress has consistently advocated pro-people economic policies, such as strengthening rural employment schemes, increasing social sector spending, and ensuring wealth distribution through fair taxation policies.

Without immediate corrective measures, India risks becoming a two-tiered economy — one in which a tiny elite thrives while the vast majority remains trapped in economic despair.