Indian households are accumulating debt faster than they are building financial assets, with liabilities growing 102% between 2019 and 2025, while assets grew only 48%. Bank deposits remain the main savings vehicle, but mutual funds are increasingly popular. Rising household debt poses economic, financial, and social challenges, highlighting the need for financial literacy, responsible borrowing, long-term investments, and supportive government policies to ensure sustainable household financial health.
Click to View MoreIndia’s public debt, currently around 57% of GDP, has been rising due to persistent fiscal deficits, growing welfare and infrastructure spending, and higher interest costs. High debt limits fiscal flexibility, increases taxpayer burden, and can slow economic growth. The government is addressing this through fiscal consolidation, tax reforms, optimized expenditure, and debt management strategies, aiming for a sustainable debt-to-GDP ratio of 50% by FY31 while supporting economic growth.
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