The household debt as a percentage of gross domestic product (GDP) may have declined to 34 per cent in the first quarter of 2021-22, according to an estimate by the State Bank of India’s research report Ecowrap.
The COVID-19 pandemic has resulted in a spike in household debt to the GDP rate.
As per the report, it rose sharply to 37.3 per cent in 2020-21 from 32.5 per cent in 2019-20.
“We estimate that household debt as a percentage of GDP has declined to 34 per cent in Q1 FY22 with the commensurate rise in GDP in the first quarter, though it has increased in absolute terms, the research report released on Wednesday showed. In absolute numbers, the household debt has increased to Rs 75 lakh crore in the first quarter of FY22 from Rs 73.59 lakh crore in FY21,” it said.