Households are accumulating debt faster than assets
Indian households have been accumulating debt faster than they are creating assets lately.
From 2019-20 to 2024-25, the annual additions to financial assets grew by 48%, but the annual additions to debts jumped by a massive 102%.
This shift may be changing how families manage their money and investments.
Assets vs debts
Annual additions to assets rose from ₹24.1 lakh crore to ₹35.6 lakh crore, while annual additions to debts doubled from ₹7.5 lakh crore to ₹15.7 lakh crore.
More folks are turning to mutual funds—up from just 2.6% to over 13% of new investments—though bank deposits still lead the pack at one-third of all assets added.
At the same time, cash holdings dropped, and other options like insurance and pension funds stayed steady, showing that people are mixing things up even as they borrow more.