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Data Drive: Rising household liabilities

Households contribute significantly for investment in financial assets in the economy; this segment has the highest financial net worth (88.3% of net national income in 2019-20 as compared with 35.3% for financial companies).

While the growth in financial assets of this segment has moderated, growth in liabilities has risen in 2019-20, data from RBI show.

Households contribute significantly for investment in financial assets in the economy; this segment has the highest financial net worth (88.3% of net national income in 2019-20 as compared with 35.3% for financial companies). While the growth in financial assets of this segment has moderated, growth in liabilities has risen in 2019-20, data from RBI show.

As a result, the financial surplus of households—net acquisition of financial assets less net increase in financial liabilities—has reduced to 9.3% of net national income, a level seen in 2015-16, which will have a bearing on the investments in the economy.

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