Economy Watch - India’s Debt Growth Accelerated In Q2: Motilal Oswal

Economy Watch - India’s Debt Growth Accelerated In Q2: Motilal Oswal

An employee uses elastic bands to bundle banknotes. (Photographer: Dimas Ardian/ Bloomberg)

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Motilal Oswal Report

India’s non-financial sector debt grew 11.9% YoY in Q2 FY22 (quarter-ending September 2021), similar to the 12.2% average growth during the previous two quarters.

Outstanding non-financial sector debt rose to Rs 371 trillion in Q2 FY22. However, it eased to 170.2% of gross domestic product (from its peak of 180.2% of GDP in Q4 FY21) due to the nominal GDP normalisation effect.

Within non-financial sector debt, general government debt (center + states) continued to rise strongly at 16.1% YoY in Q2 FY22, while the non-government, non-financial debt grew to a nine-quarter high of 7.7% YoY.

Within the non-government, non-financial sector, household debt growth softened to a five-quarter low at 9.1% YoY, while non-financial companies debt rose to a nine-quarter high of 6.8% YoY in Q2 FY22, compared with 2.2% YoY growth in Q2 FY21 – the lowest in two decades.

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Motilal Oswal India Economy Observer.pdf
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