HOUSEHOLD DEBT TRENDS IN INDIA
India Inc: Key takeaways from Q2 earnings season for investors
The second quarter of FY25 saw mixed financial results for Nifty 50 companies. While Pharma and Realty thrived, Energy and Infrastructure struggled. Factors like uneven rainfall and inflation impacted sectors like FMCG and Auto. Despite challenges, companies adapted through operational efficiency and strategic initiatives, with optimism for a stronger second half of the fiscal year.
EMs to grapple with dollar surge and debt challenges in 2025: Taimur Baig
?Going into 2025, those who are looking to do debt refinance or debt raising, both interest rates and the exchange rate angle would be more challenging, I think there is no question about it.
Are Indian households overleveraged in the equity market?
Reserve Bank of India has released new data revealing a surge in Indian household financial assets, driven by significant growth in equity investments. Despite this, household debt has also doubled since 2019, raising questions about the impact of this financial wealth on consumer spending.
India to contribute 20 pc of global workforce growth between 2023-2050, China share to decline: Report
India is set to play a pivotal role in global workforce growth, contributing 20 per cent of it between 2023 and 2050, according to a report by Angel One Wealth. In contrast, China is expected to witness a decline in its workforce during this period.
Vodafone Idea's debt funding plan could face more delay: CEO Akshaya Moondra
Vodafone Idea needs funds for 4G and 5G expansion. Banks are hesitant to lend until there is clarity on AGR dues. The telecom operator awaits government response on potential relief measures. Vodafone Idea has already secured ?24,000 crore in equity funding. The company plans to invest in network expansion and 5G rollout in key markets by the fourth quarter.
Customers consuming more should pay more, subs loss to BSNL reversing quickly: Vi official
Vodafone Idea's CEO, Akshaya Moondra, has called for further tariff increases in the Indian telecom sector. He argued that customers with higher data consumption should bear a larger share of the cost to ensure industry profitability and widespread connectivity. This statement comes despite Vodafone Idea, alongside other major operators, experiencing subscriber loss to BSNL following a recent tariff hike.
- Go To Page 1
Household debt at new record squeezing low-income Americans
Higher debt levels for mortgages, auto loans, credit cards and student loans last quarter drove overall consumer debt to a new record of $17.9 trillion, according to the Federal Reserve Bank of New York. Households in the aggregate saw incomes rise more than their debt, but younger consumers and lower earners faced more strain, Fed researchers said.
Bitcoin zooms past $84,000, likely to make higher highs
Bitcoin prices have soared by around 127% in the past year from $36,000 levels. Dow Jones industrial Average index of the US and India's benchmark Nifty 50 have gone up 30.3% and 11.11%, respectively, during this period. The virtual currency was at $69,373.7 on the day of voting in the US, also the day before Trump claimed victory. It has surged about $14,600 since then.
Onion price hikes make wallets weep across India
Onion prices in India have skyrocketed to Rs 70-80 per kilogram, impacting household budgets and causing distress among consumers. Vendors attribute the price hike to inflation and sourcing costs, while consumers express concerns about the affordability of this essential ingredient. Despite the surge, onions remain a staple, compelling people to purchase them despite the inflated prices.
This festival of lights, UPI lit the biggest fireworks
The spike in ecommerce transactions with purchases ranging from pet products to books, new digital media subscriptions and even holidays contributed to the upsurge in online payments, according to industry data. Online retailers and digital payment companies had been recording brisk sales right through the festive month, running up to Diwali.
Backpacker hostel chain The Hosteller raises Rs 48 crore led by V3 Ventures
Founded in 2014, it plans to expand from 2,500 to 10,000 beds across India within 18 months, focusing on property expansion and customer acquisition. Operating in 60 locations, The Hosteller targets new markets in Odisha, West Bengal, and the northeast. It reported Rs 55 crore revenue in FY 2024, aiming for Rs 100 crore this fiscal year.
India's Q2 GDP growth may slow down to 6.5%; FY25 growth seen closer to 7%: SBI
SBI economists predict a dip in India's GDP growth to 6.5% for the September quarter, citing temporary pressures on the domestic economy. Despite this, they maintain an optimistic outlook, expecting a rebound in the following quarter fueled by rising rural demand and anticipate FY25 growth to approach 7%.
Ratan Tata¡¯s will for his dog could spark a 'Pawsome' trend in pet care legacies
Ratan Tata's will for his pet dog Tito may lead to more pet owners planning for their pets' care in their wills. Though pets can't inherit property, options include leaving funds to caretakers or shelters. This rising trend is mostly seen in major Indian cities like Mumbai and Bengaluru.
Gen Z: Brands chase 37.7 crore Indians for the $1.4 trillion money they may spend
India¡¯s 377 million-strong Gen Z population is redefining consumer behavior, influencing 43% of household consumption and pushing brands to adopt personalized, affordable strategies. Major e-commerce platforms are launching Gen Z-specific stores and platforms, upsurging festive sales to capture this tech-savvy, trend-driven demographic's spending power.
India delivers strong message to Pakistan at SCO; Jaishankar condemns terrorism
External Affairs Minister S Jaishankar stated at the SCO summit that terrorism and extremism on India-Pakistan borders hinder trade and connectivity. He emphasized the need for mutual respect and territorial integrity for cooperation. Jaishankar also highlighted global conflicts, climate disruptions, and financial instability, stressing the importance of commitment to the SCO Charter for regional progress.
South Korea's central bank raises rates in bid to boost economy
The bank raised the rate by a quarter percentage point in August 2021 over concerns about inflation and soaring household debt, driven in part by skyrocketing house prices, and then froze rates for over three years.
Monthly income of rural households increased by 57.6% in 5 yrs: NABARD survey
A survey by NABARD shows rural household monthly income rose by 57.6% in five years, from Rs 8,059 in 2016-17 to Rs 12,698 in 2021-22. Financial savings and insurance coverage also increased. More households took institutional loans and financial literacy improved. Landholding size decreased from 1.08 hectares to 0.74 hectares.
View: Scaling up food processing in India by tapping houesholds' potential
India's food processing sector is expanding due to urbanization and changing lifestyles, but faces challenges in formalizing household enterprises. Promoting home-based food processing can boost women's employment and reduce post-harvest losses, but regulatory hurdles need to be addressed for this segment to thrive.
Rating companies post more upgrades for India Inc as credit quality improves
For Crisil, overall, there were 506 upgrades and 184 downgrades. The credit ratio increased to 2.75 times in the first half of this fiscal from 1.79 times in the second half of last fiscal. This highlights the sustained strengthening of India Inc's credit quality.
India's home & household market expected to reach USD 237 bn by 2030: Deloitte report
India's home and household market is projected to reach USD 237 billion by 2030, growing at over 10% annually. This growth is driven by rising disposable incomes, shifting consumer preferences, and a focus on comfort and convenience. Tier 2 and tier 3 cities are emerging as significant growth hubs.
Household Budgeting: Follow these two core principles to build a healthy financial habit in the family
There are two core ideas to imbibe about personal finance. First, money is a limited resource. Second, there are alternative uses of money and one makes a choice every time one uses it. I never tire of repeating these two principles because household financial behaviour, habits and, thus, health, depend on how well-entrenched these ideas are in the minds of its members.
India's household debts surge on back of housing loans, rising trend of unsecured lending
A report by Care Edge Ratings reveals that India's household debt has reached 38 per cent of GDP, driven mainly by housing loans, which make up over 50 per cent of retail loans. While unsecured loans are also rising, the overall gross household savings remain stable at around 24 per cent of GDP. The shows a shift from bank deposits to real estate investments.
View: India needs more lending ¡ª but not to everyone
India's Reserve Bank plans to introduce a 'unified lending interface' to expand digital payments into lending. This system aims to help farmers and small businesses access credit more easily. However, there are concerns about the potential impact on household debt, which is already rising.
Households likely to build back financial assets as incomes rise, says RBI Dy Guv Michael Patra
Recently, the net financial savings of households, have almost halved from the levels that existed in 2020-21 because of behavioural shifts underway in the form of unwinding of prudential savings accumulated during the pandemic as well as transitions from financial assets to physical assets such as housing, Patra said.
Problems of over-lending in microfinance surface again
Overleveraging in microfinance has resurfaced despite RBI's regulations from two years ago. Issues include unreliable household income measurement and over-reporting by field officers. Industry bodies are pushing for stricter loan exposure limits. Increased delinquency rates have led lenders to take tighter measures for new-to-credit customers, aiming to mitigate emerging credit risks.
Households expect inflation to edge up: RBI survey
The Reserve Bank's survey indicated Indian households' growing concerns about inflation, predicting higher rates across all measured periods. The survey noted an increase in the number of respondents who expect price rises, particularly in food and services. Persistently high food inflation since November 2023 has influenced these expectations.
Household debt needs to be kept under watch
"With overall household savings declining to 18.4% of GDP (gross domestic product) in FY23 from an average of 20% of GDP over 2013-2022, and coupled with an increasing trend in financial liabilities, household debt warrants close monitoring from a financial stability perspective," the Reserve Bank of India (RBI) said in its latest Financial Stability Report released on Wednesday.
Savings down, financial liabilities up: RBI says household debt warrants close monitoring
The Reserve Bank of India highlighted rising household financial liabilities post-Covid, with overall savings dropping to 18.4% of GDP in FY23 from an average of 20% between 2013-22. Household debt, driven by increased retail loans, is mostly held by prime credit quality borrowers. Savings are now shifting towards physical assets and non-bank investments.
Fall in Household Financial Savings actually a worry
The Reserve Bank of India has warned that household debt needs close monitoring due to a decline in overall household savings to 18.4% of GDP in FY2022-23, and an increasing trend in financial liabilities. The share of net financial savings in total household savings has been declining, with 28.5 per cent in 2022-23.
Load More
