SIP additions fall, credit card delinquencies rise amid slowing growth: report
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New Delhi: The mutual fund industry’s Systematic Investment Plan (SIP) account additions have fallen to 1.3 million, which is the lowest in 6 months amid the country’s economic slowdown with the GDP growth hovering at 5.4% in the July-September quarter, The Wire reported.
SIP account additions plummeted to the lowest point for the fourth consecutive month in November, compared to 2.5 million in October.
Meanwhile, showcasing a ‘mixed picture of the growth trajectory’ economic and sectoral data reportedly pointed to challenges in investment, consumer spending and wage trends, according to the report.
Data from the Association of Mutual Funds in India linked the decline in SIP account additions to fewer new registrations and a slowdown in new fund offerings, it is reported citing Business Standard .
After the passenger vehicles (PVs) market faced a 14% year-on-year (YoY) sales drop in November, the Federation of Automobile Dealers Association reported record-high discounts of up to Rs 3.7 lakh on PVs in December.
However, retail sales fell in October after the festival season and the dealers were left with an inventory of around 65 days, according to the report.
The issuance of e-way bills, which is a point at good movement across the country, marked a fall to a five-month low of 101.8 million in November, from a record 117.2 million in October.
A report presented to the government by the Federation of Indian Chambers of Commerce & Industry and Quess Corp pointed to slowing wage growth in key sectors between 2019 and 2023.
The situation, according to a report by The Indian Express, was exacerbated by retail inflation which crossed the RBI’s tolerance range at 6.21% in October.
Higher delinquencies were reported in credit card segment in October 2023 with accounts overdue by 91-180 days increasing to 7.6%, up from 6.5% in June alongside card issuance dropped by 34.4% YoY in Q1FY25 to 4.4 million.
Experts warns that mounting inequality could further impact consumption, thus hindering ‘sustainable growth’.
