India’s household debt soars to 32.3% of GDP, savings hit 50-year low

India ranks second globally in family debt (excluding mortgages) at 32.3% of GDP. This video examines how stagnant incomes and rising prices are forcing Indians to borrow for each day consumption, driving family financial savings to a 50-year low.

Center-class households are notably affected, with meals costs almost doubling over the previous decade. The RBI studies 45% of debtors are actually sub-prime, with half their loans going towards consumption bills.

This debt surge is already slowing key sectors together with vehicles, shopper durables, actual property, and FMCG, with city markets displaying clear indicators of lowered spending.