India ranks second globally in household debt (excluding mortgages) at 32.3% of GDP. This video examines how stagnant incomes and rising costs are forcing Indians to borrow for daily consumption, driving household savings to a 50-year low.
Middle-class families are particularly affected, with food prices nearly doubling over the past decade. The RBI reports 45% of borrowers are now sub-prime, with half their loans going toward consumption expenses.
This debt surge is already slowing key sectors including automobiles, consumer durables, real estate, and FMCG, with urban markets showing clear signs of reduced spending.
