Low borrowing costs lead to bonded labour.

"The total amount of money allocated towards food subsidy stood at Rs 5.25 trillion" in 2020-21, wrote Vivek Kaul. "The original allocation, made in February 2020 was...just Rs 1.16 trillion," Mint. This was a one time payment to wipe out debts of Food Corporation of India (FCI) which borrows money to buy agricultural produce at a Minimum Support Price, wikipedia, to protect farmers from fall in prices. The food grains bought by the FCI are then distributed through the Public Distribution System, or ration shops, at low prices to poor people. The government has to compensate the FCI for the difference in buying and selling prices and this it does by borrowing from the National Small Savings Fund (NSSF) comprised of schemes which pay a higher rate of interest, Financial Express, than fixed deposits in high street banks, ET Money. The government resorts to sleights of hand known as 'off-budget borrowings',The Indian Express (TIE), to keep borrowings from being counted in the fiscal deficit. "Off budget borrowings are loans that are taken not by the Centre directly, but by another public institution which borrows on direction of the central government." The NSSF schemes have to pay higher rates of interest to attract funds away from banks and investments "that are maturing in a given year are basically paid out of the fresh investments that come in during the course of that year". Sounds exactly like a Ponzi scheme. "A Ponzi scheme is an investment fund that pays existing investors from funds collected from new investors," Investor.gov. However, there is no risk of the NSSF collapsing, like the schemes run by Bernie Madoff, Investopedia, because the government can always print more money. By clearing off all debt to the NSSF the government does not need to borrow from it anymore and so can reduce the rate of interest it pays on these schemes. "The idea being that once interest rates on small savings schemes went down, banks would be able to cut interest rates on fixed deposits further, which, in turn, would allow them to cut interest rates on their loans." So, rich people would be able to borrow for cheap while poor people would face a savage cut in returns on their meagre savings. In India "public spending on healthcare is among the lowest in the world", so that, "Even before the pandemic struck, India's out-of-pocket expenses on healthcare were among the highest in the world accounting for 60% of total health expenditure," Economic Times (ET). "Loans taken to meet out-of-pocket expenses on health can be more damaging than other household debt because the illness 'limits one's ability to work, leading to depletion of household savings and unanticipated economic shocks', said Sushil Kumar Sinha, an economist with India Ratings and Research." Low interest on loans charged by banks helps only rich people because the poor cannot borrow from banks to pay for medical expenses and so have to borrow from moneylenders at exorbitant rates of interest, and abuse, The News Minute (TNM). Local moneylenders are usually thugs who will not hesitate to resort to extreme violence to force borrowers to repay their loans, The Week. Thousands end up as bonded labour, essentially slavery, where they have to work all day everyday without pay, TNM. Industrialist Gautam Adani and family are said to be worth $60.7 billion, Forbes, but in January BJP MP Subramaniam Swamy tweeted, "Trapeze Artist Adani now owes Rs 4.5 lakh crores (Rs 4.5 trillion) as NPA (non-performing assets) to banks." "Yet his wealth is doubling every two years since 2016. Why can't he repay the banks." Expressing concerns over widening inequality in India, former RBI Governor D Subbarao said liquidity in the domestic market and foreign fund flows are leading to soaring of prices of stocks and other assets, Business World. Money is finite. If the rich become richer, the poor will become poorer. Just a matter of percentages.