The Silent Reshaping of India’s Credit Landscape

Real private final consumption expenditure has been averaging at 3.5-4 per cent over the past five years despite the exuberant leveraged spending. And while the contraction in financial savings was seen as a sign of improving household confidence, it ironically accompanied a languid actual consumption, indicating faltering real incomes.

Indeed, the

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So what is camouflaged by the robustness of corporate situation, and well capitalised banks is the persistently stressed Indian households whose income constitute 78 per cent of India’s GDP. The other dimension of this stress is that the burden of fiscal consolidation from a high level of public debt, estimated at ₹270 trillion or 90 per cent of GD

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