GK and monthly revision

Household sector debt climbs to 45.5 pc of GDP in Sep 2025: RBI report

According to a report by the Reserve Bank of India (RBI), household debt in India has surged to 45.5% of GDP as of September 2025, primarily due to an increase in non-housing retail loans, which now comprise over half of total borrowings. This trend indicates a growing reliance on consumer credit, yet the quality of borrowers is improving with a rise in prime borrowers. The implications of this debt increase are significant for economic stability and consumer spending, raising concerns about debt servicing amid depreciating assets.