India's Household Debt and Savings Crisis

• 10 Apr 2024

Source: TH

India's economic landscape has witnessed a concerning trend with household debt levels soaring to a historic high of 40% of GDP by December 2023, while net financial savings moved to an alarming low of around 5% of GDP.

• The report forecasts that the trend of low net financial savings is likely to persist, with household debt fueled by personal loans, agricultural loans, and business loans continuing its ascent.
• This financial strain, coupled with declining Gross Domestic Savings, paints a grim picture of India's economic stability and underscores the urgent need for comprehensive policy measures to address this mounting crisis.

Read more: Household Consumption Expenditure Survey 2022-23