New Delhi: A frightening news has come to the fore in front of the countrymen battling the Corona epidemic. A report by SBI Research has revealed that the families of India are burdened with debt. The corona epidemic has had a huge impact on the income and economic condition of the people, increasing the debt at the family level.
This report of SBI Research says that in the financial year 2020-21, the debt on the family has reached 37.3 percent of the GDP. Which was 32.5 percent in the last financial year 2019-20.
It has also been said in this report that due to the second wave of the epidemic, this ratio of debt may increase further in the current financial year. However, the level of family debt has been increasing since the implementation of GST in July 2017. Earlier, demonetisation was implemented in November 2016.
According to the report, the level of debt on households has increased by 7.20 percent in the four years from the financial year 2017-18. It was 30.1 percent in the financial year 2017-18, which increased to 31.7 percent in 2018-19, 32.5 percent in 2019-20 and jumped to 37.3 percent in 2020-21.
Although the family debt to GDP ratio in India is less as compared to other countries. 90 in Britain, 79.5 in America, 65.3 in Japan, 61.7 percent in China. Whereas Mexico has the lowest at 17.4 percent, rising household debt means that their savings rate has decreased due to increased consumption and spending on health.