As per a report, India’s household debt level has touched an all-time high of 40% of Gross Domestic Product (GDP) in December 2023.
The net financial savings had dropped to their lowest level at around 5% of GDP.
As per the Reserve Bank of India (RBI) estimate financial savings had dropped to 5.1% of GDP in 2022-23. It has dropped to 47-year low.
The first revised estimates of national income for 2022-23 released in February raised the estimated net financial savings in households to 5.3% of GDP.
The revised estimates also raised household debt levels to 38% of GDP in 2022-23.
As per Bank’s data, unsecured personal loans continue to grow at the fastest pace within household debt. It is followed by secured debt, agricultural loans, and business loans.
In the first nine months of 2023, households’ gross financial savings rose to 10.8% of GDP, from 10.5% in the corresponding period of 2022-23.
