Home India Ministry of Finance Parliament Question: Households Debt faster than creating As...
Date: 2025-12-01 Category: Not Applicable State: Union Government Country: India

Parliament Question: Households Debt faster than creating Assets

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document contains the answer to Lok Sabha Unstarred Question No. 143, regarding household debt and asset accumulation in India. It uses data from the Reserve Bank of India (RBI) to illustrate the growth of financial assets and liabilities of Indian households. The data presented includes preliminary estimates for March 2025, based on the RBI Bulletin of August 2025. **Key Points / Main Content** * **Household Financial Assets and Liabilities:** * The stock of financial assets of households increased from ₹228.7 lakh crore (end-March 2021) to ₹352.6 lakh crore (end-March 2025). * The stock of financial liabilities increased from ₹77.7 lakh crore (end-March 2021) to ₹136.6 lakh crore (end-March 2025). * **Year-on-Year Growth Rates:** * The financial assets of households grew by 33.1% (Mar-22), 11.2% (Mar-23), 9.5% (Mar-24), 15.0% (Mar-25) and 10.1%. * The financial liabilities of households grew by 11.2% (Mar-22), 11.0% (Mar-23), 18.5% (Mar-24), 18.4% (Mar-25) and 12.9%. * **Household Investment in Mutual Funds:** * The financial saving of households in mutual funds as a percentage of gross financial saving of the household sector rose from 2.1% in 2020-21 to 13.1% in 2024-25. **Impact Analysis** **Stakeholder**: The Minister of Finance **Impact**: The Minister is responsible for being informed about the financial status of households in India and answering parliamentary questions on the topic. **Action Required**: No action is required as it is merely an informative document. **Stakeholder**: Indian Households **Impact**: Provides insight into how household debt and asset accumulation trends may impact their financial planning. **Action Required**: No action is required as it is merely an informative document.

Key Entities Referenced

Ministry of Finance: The Indian government ministry responsible for the country's finances. Reserve Bank of India (RBI): The central bank of India, whose data on household financial assets and liabilities is referenced in the response. Lok Sabha: The lower house of the Parliament of India, where the question was raised. Households: The primary subject of the question, relating to their financial assets and liabilities.
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GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA UNSTARRED QUESTION NO.143 TO BE ANSWERED ON MONDAY, DECEMBER 1, 2025 / Agrahayana 10, 1947 (Saka) Households Debt faster than creating Assets 143. Prof. Sougata Ray: Will the Minister of FINANCE be pleased to state: (a) whether it is a fact that as per the Reserve Bank of India data, the Annual Financial Debt accumulated by Indian households has grown faster than their annual financial assets; (b) if so, the details of the household debt and assets since the last five years, State-wise and year-wise; (c) whether the households in the country show more interest on depositing in mutual funds; and (d) if so, the details thereof and if not, the reasons therefor? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) & (b): As per the Reserve Bank of India, the stock of financial assets of households has increased from ₹228.7 lakh crore as on end-March 2021 to ₹352.6 lakh crore as on end- March 2025. During the same period, the stock of financial liabilities increased from ₹77.7 lakh crore to ₹136.6 lakh crore. The year-wise details of the stock of financial assets and liabilities of households are presented below. Stock of financial assets and liabilities of households (₹ lakh crore) Year-end Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Financial Assets 228.7 254.4 278.4 320.3 352.6 Financial Liabilities 77.7 86.2 102.2 121.0 136.6 Growth in stock of financial assets and liabilities of households (Y-o-Y in per cent) Year-end Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Financial Assets 33.1 11.2 9.5 15.0 10.1 Financial Liabilities 11.2 11.0 18.5 18.4 12.9 Source: RBI. Note: Data for March 2025 is based on preliminary estimates as per RBI Bulletin, August 2025, Occasional Series Table 50(b).(c) & (d): As per the Reserve Bank of India, the financial saving of households in mutual funds as a percentage of gross financial saving of the household sector, has risen from 2.1 per cent in 2020-21 to 13.1 per cent in 2024-25. The details are presented below. Year 2020-21 2021-22 2022-23 2023-24 2024-25 Financial saving of households in mutual funds (₹ lakh crore) 0.6 1.6 1.8 2.4 4.7 Gross financial saving of household sector (₹ lakh crore) 30.7 26.1 29.3 34.3 35.6 Financial saving of households in mutual funds as a percentage of 2.1 6.1 6.1 7.0 13.1 gross financial saving of household sector (per cent) Source: NSO and RBI. Note: Data for 2024-25 is based on preliminary estimates as per RBI Bulletin, August 2025, Occasional Series Table 50(a). *****

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