భారత ప్రజలు అప్పుల పాలవుతున్నారు || Indian People Are Getting Indebted || скачать в хорошем качестве

భారత ప్రజలు అప్పుల పాలవుతున్నారు || Indian People Are Getting Indebted ||

#profknageshwar #ProfkNageshwaranalysis #mlcnageshwar భారత ప్రజలు అప్పుల పాలవుతున్నారు || Indian People Are Getting Indebted || Financialisation and Rising Household Debt INCREASED dependence on debt and depletion of savings by average Indian households has been recognised as the emerging trend in the past three years. According to a recent RBI report India’s household debt has been 42.9 per cent of GDP at current market prices. The Financial Stability Report also recognises that the number of borrowers increased in the recent past. Increased dependence on personal loans, credit cards, consumer durable loans and other personal loans are on the rise. Other reports also suggest that retail credit from non-banking financial institutions and private banks increased initially followed by public sector banks. In fact, the RBI report also suggests that loans for productive purposes have much lower share in household borrowings compared to that for consumption expenditure. There are clear signals of declining net financial savings during the post-pandemic period. Also notable is the fact that for super-prime borrowers or the rich, the major borrowing is to buy assets. In other words, the poor and middle class is largely borrowing to meet their consumption demand while the rich are increasingly borrowing to buy income generating assets particularly in the backdrop of uptick in the real estate market after a decade long slowdown in housing prices. Financialisation of the economy is not a process limited to capital owners, it permeates household economy also and eventually makes consumption increasingly debt driven. A massive destruction of jobs during the pandemic led to depletion of savings and further to indebtedness for most of the working people. The recovery of the economy couldn’t create enough jobs or augment incomes of the common people rather the real incomes were eroded by successive episodes of inflation. In the backdrop of rising inequality, we experience two opposing trends. The rich with large amount of wealth and incomes are increasingly keen to park their wealth in assets for future returns as their marginal increase of goods and services for current consumption from the amassed wealth uses to be negligible. They are more interested to gain out of asset inflation. On the other hand, the poor and the working people while facing contraction in their purchasing power increasingly becomes dependent on borrowings to meet their non-discretionary expenses. https://peoplesdemocracy.in/2025/0413...