Household Savings Fall to Five-Year Low, Indebtedness Surges: TMC MP Sagarika Ghose Cites Finance Ministry Data

By A Staff Reporter

Trinamool Congress MP Sagarika Ghose has raised concerns over the financial health of Indian households, citing official data provided by the Ministry of Finance in response to her question in Parliament. Posting the figures publicly, Ghose highlighted a sharp decline in household savings coupled with a dramatic rise in indebtedness over the past four years.

According to the data shared, household savings as a share of GDP fell to 18.1% in FY24, marking a five-year low. The trend reflects growing financial stress among households, with rising consumption needs and higher borrowing costs contributing to shrinking savings buffers.

The figures also point to a substantial increase in household liabilities. Financial liabilities more than doubled—from ₹7.7 lakh crore in FY20 to ₹15.7 lakh crore in FY24, an almost 104% rise. Ghose described this surge as alarming, suggesting that families are increasingly dependent on loans to meet routine expenditures.

The expansion in borrowing is particularly notable in retail and personal loan categories. Non-housing retail loans have jumped nearly 164% since FY20, indicating higher reliance on unsecured borrowing. Personal loans recorded a 130% increase between 2020 and 2025, further underscoring the extent of financial pressure on individuals.

Ghose termed the numbers a “massive surge in household indebtedness,” urging a closer look at the economic conditions driving families toward sustained borrowing. Economists have also warned that falling savings and rising liabilities could have long-term implications for consumption stability and macroeconomic resilience.