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Business Jun 15, 2025

Household savings dip, credit usage rises in India

Household savings in India have dropped to their lowest in years, now just 18.1% of GDP, while debt has nearly doubled over the last decade. It's the third year in a row that savings have slipped, according to CareEdge Ratings.

TL;DR

Rural wage growth outpaces inflation

This trend means many families have less of a financial safety net and are taking on more loans. But there's a silver lining: rural wage growth is outpacing inflation, and retail inflation has cooled off lately. So even as saving gets tougher, there are still some positive signs for the economy if you look closer.