Syllabus: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
Debt vs Asset Growth
- Annual financial debt accumulated by Indian households has grown faster than annual financial assets since 2019-20.
- Financial assets grew 48% (2019-2025); annual liabilities grew 102% over same period significantly.
Asset and Liability Data
- 2019-20: households added ₹24.1 lakh crore to financial assets; grew to ₹35.6 lakh crore (2024-25).
- 2024-25: households added ₹15.7 lakh crore financial liabilities; 102% higher than ₹7.5 lakh crore (2019-20).
GDP Proportion
- Financial assets: 12% of GDP (2019-20) declined to 10.8% (2024-25); remained largely stable post-pandemic.
- Financial liabilities: 3.9% of GDP (2019-20) increased to 4.7% (2024-25) showing rising debt burden.
Saving and Investment Patterns
- Bank deposits remained the main destination for household savings; the share 32% (2019-20) grew to 33.3% (2024-25).
- Absolute terms: household deposits ₹7.7 lakh crore (2019-20) grew to ₹11.8 lakh crore (2024-25).
- Mutual fund shares jumped from 2.6% (2019-20) to 13.1% (2024-25) in total household financial assets.