Household Liabilities Surge, Net Savings Slide to Low: NSE Market Pulse

Chandigarh, July 12th, 2025: According to the NSE Market Pulse Report- June 2025, Between FY12 and FY20, India’s net household financial savings remained relatively stable, ranging between 7% and 8% of GDP. In FY21, this figure surged temporarily to 11.7%, driven by pandemic-induced precautionary savings and reduced opportunities for spending or borrowing. In the years following the pandemic, net financial savings declined steadily, reaching just 5.2% of GDP in FY24, well below pre-COVID averages. This decline can partly be attributed to the decline in household financial savings (% of GDP) and a sharp increase in household financial liabilities, rising from 3.7% of GDP in FY21 to 6.2% in FY24. Post COVID, household financial liabilities have nearly tripled from Rs 7.4 lakh crore in FY21 to Rs 18.8 lakh crore in FY24, which has compressed net financial savings from a peak of Rs 23.3 lakh crore in FY21 to just Rs 15.5 lakh crore in FY24. At the same time, household credit has expanded meaningfully, from remaining stable at 32-35% of GDP during FY13 to FY20 to witness a marked increase to 39.9% in FY21 and further to 42.1% in FY24. The post-COVID developments in net financial savings, financial liabilities coincide with a notable recovery in private consumption — with an average growth of 6.7% during FY23-FY25 — pointing towards consumption partly driven by credit.