India’s consumption recovery appears uneven and fragile, as recent improvements have been driven more by lower inflation, tax relief, and credit expansion than by strong wage growth. Rural demand has benefited from easing price pressures, while urban spending remains constrained by modest income growth and rising living costs. Increasing household debt and cautious consumer sentiment further highlight the structural weakness in demand. Sustainable consumption growth will depend on broad-based increases in real wages, better employment opportunities, and stronger household financial stability rather than temporary policy stimulus.
Click to View MoreIndian 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 More
© 2026 iasgyan. All right reserved