Household debt has jumped significantly in 2017-18, helped by the banking sector’s rising focus on retail lending. ET Wealth looks at the sectors where consumer debt has grown or declined over the years.
Indian households’ debt doubles
Low debt aids consumption-driven economic growth.
A very high debt can curtail consumption when interest rates are high and consumers become reluctant to borrow.
Unsold inventory leads to production cuts & creates unemployment.
India’s household debt surged 1.8 times from Rs 3.7 lakh crore to Rs 6.74 lakh crore between 2016-17 and 2017-18. It grew at an annualised rate of over 13% in the past 5 years.