![Household finances in distress —
worsening](https://images.assettype.com/fortuneindia%2F2022-05%2Ff002f4dc-6d89-43c2-9760-75b29041d0e2%2FPayment_Bank_lead.jpg?w=300&q=95)
Household finances in distress — worsening
After household (net) financial savings dipped to 47-year low of 5.3% of GDP in FY23, household debt has risen sharply to 40% of GDP in Q3 of FY24
After household (net) financial savings dipped to 47-year low of 5.3% of GDP in FY23, household debt has risen sharply to 40% of GDP in Q3 of FY24
Rajan says allocating benefits for the poorest households is not a bad investment
Distress signals: In FY23, average income and consumption may not breach FY20 level, fiscal spending is lower than FY21 and FY22 and trade deficit zooms to 6% of GDP by December 2022
In the backdrop of Russia-Ukraine war as well as higher inflation and energy costs, there is a general concern across the industry that the consumer is being squeezed, says David Boynton