MUMBAI: Indian households are presently experiencing a monetary paradox: their internet value is at an all-time excessive, however so is their debt.
The online value of Indian households has reached a document 157% of GDP within the first quarter of FY25, surpassing the earlier excessive of 152.9% recorded in 4QFY21. This comes after a decline to a post-pandemic low of 138.7% of GDP in Q4FY23.The family monetary internet value surged to 150.7% of GDP in Q4FY24 and continued to rise in Q1FY25. Previous to the pandemic, it was roughly 123% of GDP.
This surge in wealth is primarily attributed to a big enhance in monetary belongings, notably investments in fairness and mutual funds. India’s fairness market cap expanded to 146% of GDP in Q1 FY25 from round 105% a yr in the past.
Nonetheless, there’s a regarding rise in family debt, which now stands at a document 42% of GDP in response to a report by Motilal Oswal. The rise in debt is from 35% of GDP instantly earlier than the pre-pandemic.
