Households investing in financial assets; no red flags in small loan default data: CEA

Amid the raging debate on the challenges being faced by the households in savings, Chief Economic Adviser V Anantha Nageswaran today said the households are not in distress and they are investing in the financial assets. CEA said the national income data does not record these investments at market prices and that is why there is a feeling that the financial liabilities have grown faster than the financial assets of the households. “Financial assets of the households are not marked to market. So households are doing well in the aggregate. And if you also see the default statistics of small ticket loans etc, they do not flag any signs of distress,” CEA said.