{"id":15552,"date":"2025-04-12T03:48:59","date_gmt":"2025-04-12T03:48:59","guid":{"rendered":"https:\/\/exam.pscnotes.com\/current-affairs\/?p=15552"},"modified":"2025-04-12T03:49:11","modified_gmt":"2025-04-12T03:49:11","slug":"debt-metrics","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/current-affairs\/debt-metrics\/","title":{"rendered":"Debt Metrics"},"content":{"rendered":"<ul>\n<li><strong>Rising Household Debt:<\/strong> Indian household debt increased significantly from 36.6% to 42.9% of GDP between June 2021 and June 2024, signaling a potential macroeconomic challenge.<\/li>\n<li><strong>Consumption-Driven Borrowing:<\/strong> A significant portion of new loans is for consumption rather than investment, especially unsecured personal loans, raising concerns about sustainability.<\/li>\n<li><strong>Income Growth Lag:<\/strong> Household disposable income (43%) and consumption (49%) growth has not kept pace with the surge in personal loans (75% banking sector), retail credit (70% NBFCs, HFCs), and microfinance (67%).<\/li>\n<li><strong>Debt-to-GDP Ratio Importance:<\/strong> This ratio reflects a country&#8217;s ability to repay debt. India aims to reduce the central government&#8217;s ratio to 50% \u00b1 1% by 2030-31. Current estimates are 57.1% (2024-25) and 56.1% (2025-26).<\/li>\n<li><strong>Public Debt Composition:<\/strong> Public debt includes liabilities repaid from the Consolidated Fund of India, classified as internal (over 93%, primarily domestic) and external debt (19.4% of GDP in Sept 2024).<\/li>\n<li><strong>RBI&#8217;s Policy Shift:<\/strong> The RBI initially tightened credit growth measures but has partially reversed course due to slowing economic growth, raising questions about the effectiveness of spurring consumption through more debt.<\/li>\n<li><strong>Rising Delinquencies:<\/strong> Overdue loans are increasing, especially in gold loans, personal\/consumer finance, and vehicle segments, indicating stress among borrowers.<\/li>\n<li><strong>Lender Caution:<\/strong> Lenders are becoming more cautious about lending to overextended households, which may limit further credit expansion.<\/li>\n<li><strong>Structural Economic Issues:<\/strong> The household debt surge reflects underlying problems like inadequate job creation and sluggish income growth, requiring a carefully crafted policy response.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Rising Household Debt: Indian household debt increased significantly from 36.6% to 42.9% of GDP between June 2021 and June 2024, signaling a potential macroeconomic challenge. Consumption-Driven Borrowing: A significant portion of new loans is for consumption rather than investment, especially unsecured personal loans, raising concerns about sustainability. Income Growth Lag: Household disposable income (43%) and &#8230; <a title=\"Debt Metrics\" class=\"read-more\" href=\"https:\/\/exam.pscnotes.com\/current-affairs\/debt-metrics\/\" aria-label=\"Read more about Debt Metrics\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":15553,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[595],"tags":[1273],"class_list":["post-15552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-11-04-25"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Debt Metrics - Current Affairs Exam<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/current-affairs\/debt-metrics\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Debt Metrics\" \/>\n<meta property=\"og:description\" content=\"Rising Household Debt: Indian household debt increased significantly from 36.6% to 42.9% of GDP between June 2021 and June 2024, signaling a potential macroeconomic challenge. 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