11/3/2017 Worrying: Household debt is up more than 10 times in cities in the last decade

Friday, November 03, 2017 Switchto

(/)
(http://hindi.rstpost.com/) 0 500
Air Puriers

HOME (/) POLITICS (/CATEGORY/POLITICS) SPORTS (/CATEGORY/SPORTS) INDIA (/CATEGORY/INDIA)

WORLD (/CATEGORY/WORLD) BUSINESS (/CATEGORY/BUSINESS)

ENTERTAINMENT (/CATEGORY/ENTERTAINMENT)

F.CRICKET (HTTP://WWW.FIRSTPOST.COM/FIRSTCRICKET/) TECH (HTTP://WWW.FIRSTPOST.COM/TECH)

PHOTOS (/CATEGORY/PHOTOS) VIDEOS (/CATEGORY/VIDEOS)

SHOWS (HTTP://WWW.FIRSTPOST.COM/SHOWS/)

FAKING NEWS (HTTP://WWW.FAKINGNEWS.FIRSTPOST.COM)

NIKON (HTTP://WWW.FIRSTPOST.COM/NIKON/)

You are here: Latest News (http://www.rstpost.com) / Business News (http://www.rstpost.com/category/business)

Worrying:Householddebt
isupmorethan10timesin
citiesinthelastdecade
Business (/category/business) FP Staff Share 0
(/author/fp-staff) Dec, 24 2014 14:09:11 IST
Tweet (https://twitter.com/share?
text=Worrying: Household debt is up more than
10 times in cities in the last decade)
Indiaisslowlybecomingaheavilyindebtedcountrywiththeaverageamount
owedbyeachfamilyjumpingawhoppingseventimesinurbanareasand
morethanfourtimesinthehinterlandduringtheperiod2002and2012,
showsasurveybytheNationalSampleSurveyOrganization(NSSO).
(http://mospi.nic.in/Mospi_New/upload/press_note_KI18.2r70_19dec14.pdf)

In2012,asmuchas22%ofurbanhouseholdswereindebtedandtheaverage
debtperfamilywasRs84,625,upfromRs11,771in2002,whileinrural
areas,31%ofhouseholdswereindebtedcomparedto27%in2002with
averagedebtrisingtoRs32,522in2012fromRs7,539in2002.

Ason30.6.12,the'debt-asset'ratioattheall-Indialevelwas3.7%forurban
areasand3.23%forruralareas.

Butwhat'sworseistheplightoffarmers.Over50percentofagricultural
householdsareindebt;and42percentofthemowemoneytobanksand26
percentowemoneylenders.Debtlevelsareashighas93%inAndhra
Pradesh,89%inTelanganaand82.5percentinTamilNadu,showskey

indicatorsfromtheNSSO
(http://mospi.nic.in/Mospi_New/upload/press_note_KI33_r70_19dec14.pdf)
(NationalSampleSurveyOrganisation)report.Jharkhand,Assamand
Chhattisgarh)weretheleastindebtedstates.
Worrying:Householddebtisup 'Gradualrecoveryoncards,FY'18 GDPdecline:YashwantSinha GDPdecline:ArunJaitleyhintsat BankNPAs:RBI'ssecondlistof

lastdecade
close
1
morethan10timesincitiesinthe GVAgrowthlikelyat6.7%',says
Nomurareport 2 speaksup,seeshardlandingfor
economyafternoteban,poorly 3 stimulusbutdogovt,RBIhave
roomforanaccommodative 4 defaultersincludeVideocon,JP
Associates,saysreport 5
conceived GST policy?
http://www.rstpost.com/business/economy/worrying-household-debt-is-up-more-than-10-times-in-cities-in-the-last-decade-2012359.html 1/20
11/3/2017 Worrying: Household debt is up more than 10 times in cities in the last decade

This'Situationassessmentsurveyofagriculturalhouseholds'showed51.9
percentofallagriculturalhouseholdswereindebted,withtheaverageamount
ofunpaidduesbeingRs47,000.

About60percentoftheoutstandingloansweretakenfrominstitutional
sourceswhichincludedGovernment,Co-operativesocietyandbanks.Among
thenoninstitutionalsources,agricultural/professionalmoneylenders(25.8
percent)hadthemajorshareintermsofoutstandingloans,theysurvey
revealed.Marginallandholdinghouseholdssufferthemostwithonly15%of
theircreditfrominstitutionalsources.

Thereportfurtherfoundthatabout44%oftheestimatedagricultural
householdsinthecountryhadanemploymentguaranteeschemeor
MGNREGAjobcard.However,only38%inthelowestlandclass(lessthan
0.01ha)hadjobcards.

AnotherNNSOsurveytitled'KeyIndicatorsofDebtandInvestmentinIndia',
foundthattheaveragevalueofassetsamongruralhouseholdswasaboutRs
10lakhwhileinurbanareasitwasnearlyRs23lakh.

Landandbuildingwerefoundtobethetwomajorcomponentsofhousehold
assets.Intheruralareas,landandbuildingstogether,accountedfor94%
shareinthetotalvalueofassetswhileinurbanareas,theyaccountedfor92%
oftotalassets.

Moreover,incidentsofindebtedness(IOI)inruralIndiawasthelowest(16.9%)
forSThouseholdsandhighest(35.7%)forOBChouseholds.InurbanIndiatoo
thetrendwassimilarwiththelowestIOIforSThouseholds(16.4%)andthe
highestthatofOBCs(26%).

PublishedDate:Dec22,201409:28am|UpdatedDate:Dec24,201402:09
pm

YouMightAlsoLike

Recommendedby (http://www.outbrain.com/whatis/default/en)

AlsoSee

close

http://www.rstpost.com/business/economy/worrying-household-debt-is-up-more-than-10-times-in-cities-in-the-last-decade-2012359.html 2/20