India’s sky-high household debt faces a year of reckoning
2 days, 17 hours ago

India’s sky-high household debt faces a year of reckoning

Live Mint  

The much-awaited boom of consumer spending has not materialized, with demand in both rural and urban areas remaining subdued. Countries such as Poland, Mexico and South Africa all have higher per capita income, but a lower level of household debt. Consumption tilt As of March 2024, housing loans accounted for 30% of total household debt. Motilal Oswal in a report last year pointed out that non-mortgage household debt in India was higher than that of many advanced economies. If a greater level of debt is taken to finance consumption, this makes consumer spending much more sensitive to factors like interest rates, and puts inherent limits on consumption growth.

India Household Loans Debt Interest Rates Interest Household Debt 2024 Consumer Spending Points Percentage Rbi Potential Borrowers  household  2024  percentage  loans  skyhigh  reckoning  faces  points  report  interest  spending  debt  gdp  indias

History of this topic

India’s household debt is rising but low compared to other emerging markets: RBI
1 week, 6 days ago

India’s household debt is rising but low compared to other emerging markets: RBI

Deccan Chronicle  

Mumbai: The Indian household debt has been increasing over the past three years but remains relatively low compared to other emerging market economies, the Reserve Bank of India said in its December 2024 Financial Stability Report. “At 42.9 per cent of GDP in June 2024, India’s household debt is relatively low compared to other EMEs, however, it has increased over …

How to address India's falling household savings
3 weeks, 1 day ago

How to address India's falling household savings

Live Mint  

Savings have long been the backbone of financial stability in Indian households. Read this | Savings to consumption via debt—warnings from India’s households Key factors behind this trend include shifting consumption patterns and evolving investment behaviours among modern consumers. Urban consumers could benefit from digital micro-saving apps linked to everyday expenses, while rural households might prefer simplified savings accounts with …

Economic Survey 2024: Households not in Distress
5 months, 3 weeks ago

Economic Survey 2024: Households not in Distress

Deccan Chronicle  

New Delhi: Keeping in view the investing trend of people in the country, chief economic advisor V Anantha Nageswaran on Monday said that households are not in distress as they are investing more in financial assets and their market values are not captured in the national income data. As per the Economic Survey 2023-24, the registered investor base at NSE …

Raging inflation, stagnant wages forcing households into debt: Congress
9 months ago

Raging inflation, stagnant wages forcing households into debt: Congress

The Hindu  

The alarm bells are ringing for the Indian economy, but Prime Minister Narendra Modi has not heard them, the Congress said on April 9. The principal Opposition party’s statement was in response to a news report in The Hindu that quoted the findings of leading financial services firm Motilal Oswal on India’s growing household debt. Party general secretary Jairam Ramesh …

Shedding more light on the debt dilemma
1 year, 5 months ago

Shedding more light on the debt dilemma

The Hindu  

The elevated levels of India’s fiscal deficit and public debt have been a matter of concern for a long time in India. Financial repression The debt-dynamics equation states that when there is no primary deficit, if the growth rate of GDP exceeds the effective interest rate paid on government bonds, the overall debt will decline. When the interest rate on …

India likely to double home loans to $600 billion in 5 years: HDFC’s Parekh
2 years, 7 months ago

India likely to double home loans to $600 billion in 5 years: HDFC’s Parekh

The Hindu  

Demand for home loans will continue to remain robust and India should be able to double its home loans to about $600 billion in the next five years, HDFC Ltd. chairman Deepak Parekh said in a letter to shareholders. Mr. Parekh said despite the doubling of housing loans, India’s mortgage penetration would still remain low at 13% of the GDP. …

Over 50% Agricultural Families in Debt with Average Loan of Rs 74,121 in 2019: Survey
3 years, 4 months ago

Over 50% Agricultural Families in Debt with Average Loan of Rs 74,121 in 2019: Survey

News 18  

Over 50 per cent of agricultural households in the country were in debt with average outstanding loan per household at Rs 74,121 in 2019, says a survey conducted by National Statistical Office. The report also found that in rural India, 17.8 per cent households were indebted to institutional credit agencies only against 14.5 per cent households in urban India. About …

India should worry about its public debt
3 years, 11 months ago

India should worry about its public debt

Live Mint  

NEW DELHI : Till 1972, India’s general debt—for the Centre and states—rose steadily to about 39% of gross domestic product and then fell sharply in 1974. Remember that the granular security level data for the Centre and states allows us to paint a much more accurate picture of the interest rate component’s contribution to changes in public debt. As our …

India's weak household consumption to curb economic growth: Moody's
5 years ago

India's weak household consumption to curb economic growth: Moody's

India TV News  

Moody's Investors Service on Monday said that India's weak household consumption will curb economic growth and weigh on the credit quality of Indian issuers in a range of sectors. Moody's has lowered its GDP growth projection for India for the fiscal year ending March 2020 to 4.9 per cent from 5.8 per cent. The major factors responsible for weakening economic …

Opinion | Lighten India’s debt burden to give growth a chance
5 years, 2 months ago

Opinion | Lighten India’s debt burden to give growth a chance

Live Mint  

With India’s economy growing at the slowest pace in six years, many wonder why consumers, companies and even the public sector can’t set it right. For a time, it was forgotten as India’s economy got a welcome boost from falling oil prices, a surge in lending from shadow banks, and a rise in public sector investment. Oil prices stabilized, alarm …

India's rising household debt has helped drive demand but will lead to negative impact on growth in long-term: Report
5 years, 4 months ago

India's rising household debt has helped drive demand but will lead to negative impact on growth in long-term: Report

Firstpost  

An increase in the household debt-to-GDP ratio by one percentage point lowers output growth in the long run by 0.1 percent. Figure 2: India’s Household Debt While this rise in debt has helped drive demand after the shocks of demonetisation and GST, these signs are not promising over the long run. The paper further states that the negative impact of …

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