Insights on India’s household sector

A report on financials of Indian households has provided some interesting insights. While the availability of mobile phones is ubiquitous across India, less than 10% of households possess cars. The savings rate of Indian households is noticeably higher than those in many developed countries. India’s debt-to-GDP ratio is significantly lower than that of many developed countries, thus not posing any systemic risks. While the share of deposits in financial savings has decreased steadily, that of life insurance and equities have increased. The rapid surge in demat accounts points to higher equity holdings in the future.