How does the increasing household debt impact the economy in India
Exploring the implications of rising household debt on the Indian economy based on recent reports.
- Rising household debt in India can lead to increased financial vulnerability among households, limiting their ability to spend and invest in the economy.
- High levels of household debt can also impact savings and increase the risk of default, which can have a cascading effect on the overall financial stability of the economy.
- Increased household debt may lead to a decrease in consumer spending, which is a major driver of economic growth, thereby slowing down the economy.
- Excessive household debt can also strain the banking sector as it increases the risk of non-performing assets and loan defaults.
- Policymakers need to closely monitor and address the rising household debt to ensure sustainable economic growth and financial stability.
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a year ago