Covid led to a spike in household debt between 2019-20 and 2020-21
India Today
The Covid-19 pandemic led to a spike in household (HH) debt, adversely impacting families, especially in the rural sector.
The Covid-19 pandemic led to a spike in household (HH) debt, adversely impacting families, especially in the rural sector.
As per estimates, it rose sharply to 37.3% in 2020-21, from 32.5% in 2019-20 to the GDP (BIS estimates are at 37.7% as on Dec 2020). Though there has been a decline to 34% in Q1FY22 with the rise in GDP, in absolute numbers, the HH debt has increased to Rs 75 lakh crore in Q1FY22, from Rs 73.59 lakh crore in FY21. The silver line to the debt story is that there is now conclusive evidence that households, especially in rural India, are increasingly borrowing less from non-institutional or hawkish money lenders.