Household Indebtedness in India

The main goal of the Debt & Investment Survey was to gather basic quantitative information on families’ assets and liabilities as of 30.6.2018. In addition, the survey gathered data on the amount of capital expenditure incurred by families during the 2018-19 Agricultural Year (July-June) under several headings, such as residential structures, farm business, and non-farm business.

All India Debt & Investment Survey NSS 77th round Findings

As of June 30, 2018, 99.4 percent of rural Indian families (100 percent cultivator households and 98.6 percent non-cultivator households) reported holding any asset (physical or financial).

As of June 30, 2018, over 98 percent of urban Indian families (99.7% of self-employed households and 97.3 percent of other households) reported holding any asset (physical or financial). 97.5 percent of rural Indian families possessed physical assets, while 96.6 percent owned financial assets.

85.4 percent of urban Indian families possessed physical assets, while 94.7 percent owned financial assets. In Rural India, the average asset worth per family was Rs. 15,92,379 (Cultivator families receive Rs 22,07,257; non-cultivator households receive Rs 7,85,063). In urban India, the average asset worth per family was Rs. 27,17,081. (For self-employed households, Rs. 41,51,226; for other households, Rs. 22,10,707)

In Rural India, the average value of physical assets per household was Rs. 15,19,771 and the average value of financial assets was Rs. 72,608. In urban India, the average value of physical assets per household was Rs. 24,65,277, while the average value of financial assets was Rs. 2,51,804.

In Rural India, land and buildings combined account for 91 percent of total asset value, with land accounting for 69 percent and buildings for 22 percent, followed by deposits (5 percent) and other assets (4 percent ). In urban India, land accounts for roughly 49% of total asset value, followed by buildings (38%), deposits (9%), and other assets (4 percent ).

In rural India, the average amount of debt held by indebted households was Rs. 1,70,533. (Rs. 1,84,903 for cultivator households, Rs. 1,43,557 for non-cultivator households). Indebted families in urban India had an average debt of Rs. 5,36,861. (Rs. 6,52,768 for self-employed households, Rs. 4,82,162 for other households)

Around 35% of rural families said they have spent money on the formation of fixed capital (45.1 percent cultivator households, 21.5 percent non-cultivator households). Approximately 15% of urban families said they had spent money on fixed capital creation (25.3 percent self-employed households, 11 percent other households)

In Rural India, the average fixed capital expenditure per family was Rs. 8,966. (Rs. 10,689 for cultivator households, Rs. 6,712 for non-cultivator households). In urban India, the average fixed capital expenditure per family was Rs. 10,863. (Rs. 15,899 for self-employed households, Rs. 9,070 for other households). In Rural India, approximately 84.4 percent of the population aged 18 and up had a bank account (88.1 percent male and 80.7 percent female).

In urban India, around 85.2 percent of the population aged 18 and above held a bank account (89.0 percent male and 81.3 percent female).

Findings On Household Indebtedness. In Rural India (40.3 percent farmer families, 28.2 percent non-cultivator households), the rate of indebtedness was around 35 percent, compared to 22.4 percent in Urban India (27.5 percent self-employed households, 20.6 percent other households).

In rural India, just 17.8% of families (21.2 percent cultivator households, 13.5 percent non-cultivator households) were in debt to institutional credit institutions, compared to 14.5 percent in urban India (18 percent self-employed households, 13.3 percent other households).

In Rural India, 10.2 percent of families (10.3 percent cultivator households, 10% non-cultivator households) were in debt to non-institutional loan institutions, compared to 4.9 percent in Urban India (5.2 percent self-employed households, 4.8 percent other households).

 In Rural India, almost 7% of families were in debt to both institutional and non-institutional credit organisations (8.8% cultivator households, 4.7 percent non-cultivator households), compared to 3% of households in Urban India.

Survey On Debt & Investment. The AVA stands for average value of assets, which is the overall worth of all physical and financial assets, according to the All India Debt & Investment survey. Indebtedness Incidence Index (IOI), the proportion of indebted households as of June 30, 2018.

The average amount of debt (AOD) per household as of June 30, 2018 is the average amount of cash dues.

Average Amount Of Debt (AOD) Per Household. In rural families, the average debt was Rs. 59,748. (Rs. 74,460 for cultivator households, Rs. 40,432 for non-cultivator households). In urban families, the average debt was Rs. 1,20,336. (Rs. 1,79,765 for self-employed households, Rs. 99,353 for other households)

Institutional credit agencies accounted for 66% of outstanding cash debt in Rural India, compared to 34% for non-institutional credit agencies. Institutional credit agencies accounted for 87 percent of outstanding cash debt in urban India, compared to 13 percent for non-institutional credit agencies.

Conclusion

The survey gathered data on the amount of capital expenditure incurred by families during the 2018-19 Agricultural Year (July-June) under several headings, such as residential structures, farm business, and non-farm business. The main goal of the Debt & Investment Survey was to gather basic quantitative information on families’ assets and liabilities as of 30.6.2018.